According to the report from IHS Markit, Eurozone Manufacturing PMI indicated a further improvement in manufacturing sector growth during October. 

After accounting for seasonal factors, the headline index moved up to 54.8, from 53.7 in September and better than the earlier flash reading. October’s number was also the best recorded by the survey for 27 months and maintained the current run of continuous growth that began in July.

Growth was seen across all three market groups during October, albeit to varying degrees. The fastest expansion was seen in investment goods, where growth improved to its highest level for over two years. A solid gain was seen in intermediate goods, but growth weakened to a marginal pace amongst consumer goods producers. 

A fourth successive monthly increase in manufacturing production was recorded during October, with the rate of growth strengthening to its sharpest for over two-and-a-half years. A similarly sized increase in new orders was also recorded, with growth in October the best seen since the start of 2018. 

Gains in overall new orders reflected stronger demand from both domestic and external clients. New export business rose at a noticeable rate that was the best recorded by the survey since February 2018.

Sharply rising levels of new business helped to drive growth of work outstanding for a third successive month. Moreover, the rate of increase was the sharpest recorded by the survey since February 2018. Despite this, employment levels continued to be cut, extending the current period of contraction to a year-and-a-half.

Looking ahead to future production, business confidence remained positive for a fifth successive month. Italian and German manufacturers were the most optimistic about output over the coming 12 months.