Optimism in the Eurozone's manufacturing sector fell again in February, with data from Markit Economics indicating a 12-month nadir for the industry.

Manufacturing Europe

The rate of growth in Eurozone manufacturing slowed last month as production expansion, new orders and new business all slowed along with new employment.

The seasonally-adjusted Eurozone Manufacturing PMI fell to the year-low of 51.2 from 52.3, however it remains above the neutral 50 mark, keeping its head above water for 32 months in a row now.

Manufacturing production is slow but still rising. Rates of expansion in new business and new export orders were at their lowest since April 2015 and January 2015 respectively.

The performance of the 'big two', Germany and France, had a significant bearing on February's results. German manufacturing expanded at its slowest rate since December 2014 and although France's manufacturing PMI appears healthier, the underlying dynamics of data remained weak over all with production, new orders and new export orders all contracting.

Chief Economist at Markit Chris Williamson said: "With factory output in the eurozone showing the smallest rise for a year in February, concerns are growing that the region is facing yet another year of sluggish growth in 2016, or even another downturn. Lacklustre domestic demand is being compounded by a worsening global picture. Exports either fell or rose more slowly in all countries surveyed with the sole exception of Austria."

"For a region in desperate need of lower unemployment, the near-stalling of jobs growth in the manufacturing sector comes as disappointing news. Firms are cutting back on their hiring due to worries about the outlook."

There is a shortage of optimism in manufacturing in 2016 and this extends to the plastics machinery market, with the VDMA's Chief Economist Dr Ralph Wiechers stating in January 2016 that the association anticipates zero growth in mechanical engineering this year.