EU Manufacturing Survey Expands Slightly As Weak Demand Continues

Euro zone manufacturing activity expanded slightly slower than initially thought in October, as weak demand continued to restrict growth of both output and employment.

Markit’s final euro zone Purchasing Managers’ Index (PMI) for October came in at 50.6, just below initial estimates of 50.7, but above September’s 50.3 reading.

Four nations signaled expansion during October, with the Irish PMI remaining far out in front and ticking higher following a slight easing in September.

The data come after figures released on Friday showed euro zone inflation ticked up in October, bringing some much-needed relief for the European Central Bank (ECB), although the rate remained well below its target of around 2 percent.

Consumer prices rose by 0.4 percent year-on-year in October, according to official statistics published by Eurostat on Friday.

However jobless data, also published Friday, provided little cause for celebration, with the euro zone’s unemployment rate holding steady in September, at 11.5 percent.

The ECB will announce its latest monetary policy decision onThursday, and most economists are not expecting any change to interest rates,or new policy announcements.

via CNBC

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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