Eurozone manufacturing hits highest level since February 2011
Activity in the eurozone manufacturing sector was at its best level in more than six and a half years in October, according to data released on Friday.
IHS/Markit's final purchasing managers' index printed at 58.5, down from a flash estimate of 58.6 but above September's 58.1 and marking the highest reading since February 2011 and the second-highest in more than 17 years.
The upturn was led by performances from Germany, Austria and the Netherlands, with PMI readings in the first two unchanged, and the PMI for the Netherlands rising to its highest level since February 2011, at 60.4.
The survey showed that new orders and output rose, while work backlogs continued to support a solid increase in employment.
Chris Williamson, chief business economist at IHS Markit, said: "The overall performance of the manufacturing sector so far this year has been the strongest since 2000. It’s especially encouraging to see employment growing at a survey-record pace as firms seek to boost capacity in response to fuller order books. Export order growth remains encouragingly solid, suggesting little impact from the strengthening of the euro this year, and domestic demand continues to improve across the region.
“With output, demand and price pressures all rising, the survey data support the ECB’s recent shift in policy towards lower asset purchases in 2018."