Eurozone final manufacturing PMI edges higher in October

Final Markit Eurozone Manufacturing PMI rose to a 33-month high of 53.5 in October, revised higher from a flash estimate of 53.3. Data compare to a reading of 52.6 in September and signalled the steepest rate of improvement in operating conditions since January 2014.

Inflationary pressures show further signs of recovery while growth of production, new orders, new export orders and employment all accelerated. Input costs rose at the quickest clip in 15 months on the back of increased commodity prices, while output charges rose for the first time since August 2015.

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. Greece was an exception, recorded a contraction for the second straight month.

Output, new orders and new export business all rose at some of the fastest rates achieved over the past three years. New export business rose for the fortieth successive month, with the pace of increase ticking up to its fastest in over two-and-a half years.

“The eurozone manufacturing sector made a positive start to the final quarter, " said Rob Dobson, Senior Economist at IHS Markit.