Eurozone Manufacturing PMI improved in October to reach 54.8, up from September’s 53.7 and higher than the flash reading of 54.4, according to HIS Markit press release. October PMI is driven by growing output and orders at rates rarely exceeded in the past two decades. New order gains are recorded in both domestic and external clients.
- Manufacturing expansion in Eurozone was worryingly uneven, with Germany experiencing the sharpest rises, reaching the highest level for over two-and-a-half years while Greece slipped into contraction.
- Spain had a solid expansion while a modest increase was seen in France, but Netherlands and Ireland had marginal growth.
- The fastest expansion was in investment goods, where growth recorded the highest level for over two years.
- Intermediate goods had solid gains, but growth in consumer goods weakened marginally.
- Eurozone had a third successive monthly increase in average input costs, with the inflation rate being the fastest for 20 months.
- Despite the manufacturing expansion, the Eurozone area experienced employment cuts.
- Weaknesses in consumer-facing business imply that recovery will depend on household behavior normalizing and labor markets strengthening-Chris Williamson, Chief Business Economist, HIS Markit
European stocks are gaining, but the Euro is declining. DAX is up 1.83%, CAC 40 is up 1.96%, EURUSD is down 0.12%
