EU PMI Lower than Preliminary Raising Manufacturing Questions

Manufacturing growth in the eurozone was slower than expected in October with price cutting failing to lift orders, according to a survey.

The latest Markit Purchasing Managers’ Index of factory activity was 50.6, better than September’s 50.3.

But, although any reading above 50 indicates growth, the figure was below initial estimates for October.

Germany returned to modest growth, and Spain saw its eleventh straight month of growth. France and Italy contracted.

The data will be closely watched by the European Central Bank, which in September launched further stimulus measures to kickstart the eurozone’s flagging economy.

“The performance of eurozone manufacturing remained broadly flat at the start of the final quarter,” said Rob Dobson, senior economist at Markit.

He said: “Manufacturing is therefore unlikely to provide any meaningful boost to the currency union’s anaemic GDP growth.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza