PMI rise signals strong manufacturing revival in Eurozone economies
02 Nov 2009
Manufacturing activity in the 16-nation eurozone expanded in October for the first time since May 2008 according to a widely-watched index released on Monday.
The Eurozone's purchasing managers' index (PMI) for the manufacturing sector rose to 50.7 points in October, up from 49.3 in August. The index published by data and research group Markit also registered the first instance it crossed the 50.0 boom-or-bust line and marks the its highest level since April 2008 when it stood at 50.7.
Output also picked up for the third month in a row in October, which was up slightly lower than an earlier flash estimate but indicating the fastest monthly expansion since January 2008.
Meanwhile, new orders for eurozone manufacturing output posted the largest monthly increase since August 2007-with growth in Germany and France registering 26 and 35-month highs respectively according to Markit.
Only Greece, Ireland and Spain saw lower new order levels.
According to Chris Willianson of Markit, business conditions in the Eurozone manufacturing sector improved for the first time since May of last year on accelerating growth of output and new orders and moderating job losses.
However, there were still concerns due to uneven results across the blocks and Williamson said the surging nine-year high growth in France contrasted with ongoing weakness in Italy and Spain.
