- Rob Dobson, senior economist at Markit
Activity growth in Germany's manufacturing sector accelerated in October from the previous month, when it slid into the contraction territory. The Manufacturing Purchasing Managers' Index rose to 51.4, compared to 49.9 in September, and against the flash estimates of 51.8, Markit Economics said. Investors continue to watch closely economic indicators from Germany, as recent indicators having painted a mixed picture, with some of them already signalling a slowdown in the Euro zone's powerhouse. Meanwhile, in France manufacturing activity slowed in October, remaining in the negative zone. The final PMI came in at 48.5, beating market's expectations for a 47.3 mark and following 48.8 in the previous month. The sector has now been in contraction territory below the 50-point mark since May. In Italy, the manufacturing sector also deteriorated to the lowest level in 17 months in October, recording 49 points, compared with 50.7 in September, and also missing estimates of 50.6.
Overall, factory activity in the Euro zone rose at a stronger pace in October compared to the previous month, growing for the 16th consecutive month. The Euro area's manufacturing PMI came in at 50.6, up from 50.3 in September. Nevertheless, manufacturing is unlikely to provide any meaningful boost to the Euro area's sluggish GDP growth.
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