''Buoyant demand for manufactured goods drove euro zone factory activity to accelerate at its fastest pace in over two years last month and allowed firms to build up a small backlog of work, a survey found on Monday.
But that growth was still weak and Markit, compiler of the Purchasing Managers' Indexes, said evidence of a renewed downturn in France and Spain - as well as firms cutting staff - was disappointing.
Markit's Eurozone Manufacturing PMI rose to 51.6 last month from October's 51.3, just pipping an earlier flash reading of 51.5. An index measuring output nudged up to 53.1 from 52.9.
November was the fifth month the index was above the 50 level that denotes growth, and the reading was the highest since June 2011.
"More southerly countries continue to disappoint, though, especially France and Spain, where renewed downturns are evident," Chris Williamson,chief economist at Markit. said.
France's PMI plummeted to a five-month low of 48.4 from 49.1, chalking up its 21st month below 50, while Spain's sank back below the break-even mark after spending the last three months in growth territory.
The euro zone escaped from its longest-ever recession earlier this year, supported by better-than-expected growth in Germany, but a Reuters poll last month suggested the bloc's economy will grow only moderately though next year''.
Source: Reuters
