The downturn in euro zone manufacturing activity has likely passed its trough as supply chains begin to recover and inflationary pressures ease, a survey showed on Monday, leading to a rebound in optimism among factory managers.
An index measuring output, which feeds into a composite PMI due on Wednesday and seen as a good gauge of economic health, also came in at 47.8, up from November's 46.0, marking its seventh month of sub-50 readings but its highest since June.
While the input and output prices sub-indexes remained high, they both dropped substantially, likely welcome news for policymakers at the European Central Bank who have been trying to calm rampant inflation by tightening monetary policy.
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