Eurozone manufacturing indicated signs of stabilization in October, with activity contracting for the 28th consecutive month but at a slower pace, according to a report showing a gradual easing of the decline in demand.
According to HCOB’s final eurozone manufacturing Purchasing Managers’ Index (PMI) from S&P Global, October saw a rise to 46.0, slightly above the initial estimate of 45.9 but still below the threshold of 50, which separates expansion from contraction.
The index measuring output, a key component in the composite PMI scheduled for release on Wednesday, climbed to 45.8 from September’s 44.9, surpassing the flash estimate of 45.5.
Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, stated that the latest data reveals a slight improvement in the eurozone manufacturing sector in October, with production and new orders declining at a less pronounced rate compared to the previous month.
Meanwhile, prices at factories dropped at the fastest pace since April, partly validating the European Central Bank’s current policy easing measures, including the recent interest rate cuts and anticipated future reductions in December to manage inflation within the region.
