Euro area manufacturing PMI index rises in October

The manufacturing PMI survey for the euro area had a positive tone in the month of October. The headline index partially reversed the decline of the earlier month and rose 0.3 percentage points to 56.3, a level above its average over the past six months. The output component stayed unchanged from the previous month at 56.6. However, while the total new orders index was up by over 1 point to 57.7, reported foreign demand softened notably, with the new export orders index dropping a three-month low of 54.3.

The employment index rose 1 point to 54.8, a level in line with strong jobs growth in October. Most of these indices remained relatively elevated. But they proved not to be a particularly reliable guide to growth in the sector in the first half of 2017, stated Daiwa Capital Markets Research.

“While today's PMIs point to slightly more upbeat economic picture at the start of Q4, Friday's services PMIs will be a more important to gauge how overall business sentiment is evolving at the moment”, added Daiwa Capital Markets Research.

At 18:00 GMT the FxWirePro's Hourly Strength Index of Euro was neutral at -10.1148, while the FxWirePro's Hourly Strength Index of US Dollar was neutral at 4.20268. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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