Eurozone manufacturing PMI at 50.6 in October

By Tuba Sahin

ANKARA (AA) - The euro area's manufacturing sector improved during October, a London-based global data company said on Wednesday.

IHS Markit reported that the eurozone manufacturing Purchasing Managers' Index (PMI) reached 50.6, up from 50.1 in September, signaling a growth rate among the weakest over the past six-and-a-half years.

Manufacturing firms saw a ninth successive month of declining production while the services sector indicated further growth, albeit at the second-weakest rate since January.

As a critical gauge of manufacturing sector health, monthly PMI indices are based on surveys and national data, and indicate growth compared to the previous month when above 50 points and contraction when below.

Germany was the only country inside contraction territory last month.

The top-performing country was France, thanks to firmer gains in services sector activity, a return to expansion in manufacturing output and a solid and stronger private sector.

"The euro area remained close to stagnation in October, with falling order books suggesting that risks are currently tilted towards contraction in the fourth quarter," noted Chris Williamson, chief business economist at IHS Markit.

"Worryingly, what little growth was seen in October was supported by firms eating into previously placed work, meaning demand needs to revive to boost new business inflows and prevent more firms coming under further pressure to cut activity and jobs," Williamson said.