The recovery of the eurozone’s manufacturing sector rolling on, with the industry surging ahead in October, according to the latest data from IHS Markit released on Wednesday.
Markit’s manufacturing PMI for the eurozone grew from 52.6 in September, to 53.5 in October, beating the previous flash estimate of 53.3.
The purchasing managers index (PMI) figures from Markit are given as a number between 0 and 100.
Anything above 50 signals growth, while anything below means a contraction in activity — so the higher the better.
Within Europe, Germany’s economic powerhouse helped drive the recovery, growing at its quickest pace in three years, thanks to growing exports and job creation in the state. The quickest growing country for manufacturing in October was the Netherlands.
Here are the breakout country-by-country readings of the single currency area’s biggest economies, provided by Markit:
- Spain manufacturing — 53.3, previous 52.3
- Italy manufacturing — 50.9, previous 51
- France manufacturing — 51.8, previous 51.3
- Germany manufacturing — 55, previous 55.1
And here is the single currency area-wide chart:
Speaking about the results, IHS Markit’s chief business economist Chris Williamson said (emphasis ours):
“The eurozone 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.
“The broad base of the growth acceleration signalled by the headline PMI was especially pleasing. Five out of the eight nations covered saw faster expansions during October, including some of the key larger growth engines such as Germany, the Netherlands and Spain. French manufacturing meanwhile grew for the first time in eight months and at the strongest pace in over two-and-a-half years.”