FxWirePro: Daily Commodity Tracker - 21st March, 2022 
Data released earlier on Monday showed that Markit Eurozone PMI rose from 52.6 in September to 53.7 in October, the highest seen so far this year. Expansion was led by Germany, with German growth gaining significant momentum to show the second-largest monthly increase so far this year.
By contrast, the pace of growth slowed in France. Elsewhere, output growth across the rest of the region revived from September’s 21-month low but remained one of the weakest expansions recorded over the past two years.
Eurozone services PMI came in at a nine-month high of 53.5, ahead of September's 52.2 and beating all forecasts in a Reuters poll where the median call was for 52.4. The factory PMI hit a 30-month high of 53.3, above forecasts and September's 52.6, while the output index, which feeds into the composite PMI, rose to 54.4 from 53.8.
“October’s PMI is consistent with a quarterly GDP growth rate of 0.4%, led by a 0.5% pace of expansion in Germany. Modest growth of 0.2-0.3% is being signalled for France, but there are various indicators which suggest that France will enjoy stronger growth in coming months, including a marked build-up of uncompleted work," said Chris Williamson, Chief Business Economist at IHS Markit.
The Eurozone economy is likely to continue to strengthen in coming months as indicated by faster growth of orders books and acceleration in the pace of hiring. Details of the report showed new order growth was the highest since January, prompting firms to take on extra staff. Employment showed the biggest gain for three months.
Average prices charged for goods and services rose for the first time since August 2015 on firming demand. Signs of both stronger economic growth and rising price pressures, and the expectations of a robust Q4 could fuel speculation of QE tapering by the ECB.
