Euro zone manufacturing growth gains strength in October

The euro zone manufacturing sector has carried its modest third quarter recovery into the final quarter of the year. Markit's Eurozone Manufacturing Purchasing Managers Index (PMI) rose to 51.3 in October, up from 51.1 in September and signaled an improvement in overall operating performance for the fourth straight month. The PMI was also unchanged from the earlier flash estimate.
 
Among the nations covered by the survey, France and Greece were the only ones to register readings below 50, while the Austria, Germany, Ireland and Spain saw improved PMIs. In the PMI rankings, Ireland climbed to the top, overtaking the Netherlands which slipped to second place. Growth hit a near two-and-a-half year peak in Austria and rose higher in Germany, Ireland and Spain, but slowed slightly in Italy.
 
Chris Williamson, chief economist at Markit, said: "The euro zone manufacturing economy is undergoing its strongest growth period for two-and-a-half years, since the mounting uncertainty caused by the escalating sovereign debt crisis hit businesses hard in 2011."