uploads/2016/11/Flash-Eurozone-Manufacturing-PMI-in-October-2016-11-01-1.jpg

Flash Eurozone Manufacturing PMI Improved in October

By

Updated

Flash Eurozone manufacturing PMI

According to a report by Markit Economics, the flash Eurozone manufacturing PMI (purchasing managers’ index) stood at 53.3 in October compared to 52.6 in September. The October reading beat the market expectations of 52.6 and was the highest reading since April 2014.

Article continues below advertisement

Flash France manufacturing PMI

The manufacturing PMIs of the Eurozone’s major economies also showed stronger performances. The flash France (EWQ) manufacturing PMI stood at 51.3 in October 2016 compared to 49.7 in September. The October reading met market expectations. It was the first month of expansion after a contraction for seven consecutive months. A level below 50 indicates a contraction in activity while a level above 50 indicates expansion.

Flash Germany manufacturing PMI

The flash Germany (EWG) manufacturing PMI stood at 55.1 in October 2016 compared to 54.3 in September. The October reading beat market expectations of 54.3 and it was the highest reading since January 2015. The stronger performance was mainly due to the improvement in new business orders and employment growth. The purchasing activity also increased sharply in October.

The improvement in Eurozone (HEDJ) (VGK) (IEV) manufacturing PMI is a positive sign for the economy. Overall manufacturing, mining, and employment activity improved in the region.

In the next part of this series, we’ll analyze US flash manufacturing PMI.

Advertisement

More From Market Realist