Markit's Eurozone Manufacturing Purchasing Managers Index (PMI) posted 53.5 points in October this year, up from September’s 52.6 points and rising compared to the earlier flash estimate of 53.3 points.
The rate of expansion of the euro zone manufacturing sector gathered momentum at the start of the final quarter. Growth of production, new orders, new export orders and employment all accelerated, while price pressures showed further signs of increasing.
Underpinning the upward movement in the euro zone Manufacturing PMI were the sharpest expansion of production since April 2014 and the second-quickest increase of total new orders over the same period.
“The euro zone manufacturing sector made a positive start to the final quarter. Output, new orders and new export business all rose at some of the fastest rates achieved over the past three years, building on the solid increases in quarter three and underpinning the steepest jobs growth since mid-2011,” stated Rob Dobson, senior economist at IHS Markit. “On the price front, inflationary pressures in the manufacturing sector showed further signs of recovery. Input costs rose at the quickest clip in 15 months on the back of increased commodity prices, especially for energy and oil-related products. These cost pressures may be starting to trickle further along the supply chain, as firming demand allowed manufacturers to raise output charges in October for the first time since August last year,” he added.