Eurozone manufacturers report best year-to-date performance since 2000
Factories across the eurozone are having their best year since the start of the century, according to a closely-watched series of surveys, with Italy a particular highlight as businesses reported much better than expected conditions in October.
A second reading of IHS Markit’s purchasing managers’ index for manufacturing across the currency bloc showed its best year-to-date performance since 2000, and the best rate of jobs creation on record, ft.com wrote.
In addition to record jobs growth, a new reading for Italy reported the strongest growth in both output and new orders for more than six years. The Italian index rose from 56.3 to 57.8, better than even the most optimistic forecasts among economists polled by Reuters.
The report suggested that Italian businesses are benefiting from robust growth across the rest of the eurozone, with respondents noting that Germany was a particularly strong source of new orders.
That was reflected in a separate survey of German businesses, where businesses once again reported their strongest growth for six and a half years. An early reading from late last month was revised upwards slightly to 60.6, matching the level seen in September.
France provided a dampener, however, with the flash estimate revised downward from 56.7 to 56.1. Still, the figure remained well above the key 50 level that indicates growth over the month, and IHS Markit said there were signs of ‘robust client demand in both foreign and domestic markets’.
Overall, the final Purchasing Managers’ Index (PMI) for the whole eurozone came in at 58.5. That was a tad lower than the flash estimate, but still marked the best month in more than six and a half years.
Every country included in the survey recorded growth, though the rate slowed in Ireland and Greece.