Source: Sharecast
The S&P Global Eurozone manufacturing PMI came in at 52.7, down marginally on September’s record print of 52.9 but ahead of forecasts for a fall to 52.4. It was also the ninth consecutive month of expansion.
The manufacturing PMI output index fell from the previous month’s 53.6 but remained in expansionary territory, at 52.8.
A reading below the neutral 50.0 benchmark suggests contraction, while one above it indicates growth.
Respondents did, however, flag increased supply chain pressures. In particular, inputs were stockpiled to the greatest extent in almost four years, as supplier delivery delays worsened and input cost inflation jumped to a five-month high.
Among individual member countries, German manufacturing PMI was confirmed at 54.2, the second-highest for more than four years, and up on September’s 53.9. It also rose significantly in Spain, to 52.2 from 51. Consensus had been for 50.8.
In contrast, in France the PMI was revised slightly upwards, but remained in negative territory at 49.5, while in Italy, it dipped into contraction, losing one point to 49.4.
Chris Williamson, chief business economist at S&P Global Market Intelligence, said: "Another solid PMI reading extends the Eurozone’s best growth spell for manufacturing for over four years.
"The sustained growth recorded since February paints an encouraging picture of resilience for the sector, which has been buffeted by the headwinds of tariffs and conflicts in the Middle East and Ukraine, and in particular the surge in costs and supply difficulties that these have caused."
But he also cautioned: "Growth is by no means broad-based, with manufacturers in France and Italy continuing to struggle, the former suffering the additional stress of domestic political uncertainty.
"Furthermore, with input cost inflation surging sharply higher again in October…the latest PMI data add to pressure on the European Central Bank to hike rates further in the coming months, providing another headwind for businesses."
Data were collected between 12 and 23 October. The PMI is based on responses to questionnaires sent to survey panels of manufacturers in Germany, France, Italy, Spain and elsewhere, totalling around 3,000 private sector companies.