Manufacturing activity in the euro zone expanded in October for the first time since May 2008, a widely-watched index showed today.
The euro zone's purchasing managers' index (PMI) for the manufacturing sector, published by data and research group Markit, rose to 50.7 points in October, up from 49.3 points in August.
It was the first time the reading has been above the symbolic 50 boom-or-bust line and marks its highest level since April 2008 when it also stood at 50.7.
Output also increased for the third month running in October, rising by slightly less than an earlier flash estimate but indicating the fastest monthly expansion since January 2008.
Meanwhile, new orders for euro zone manufacturing output posted a largest monthly rise since August 2007 - with growth in France and Germany hitting 35 and 26 month highs respectively, Markit said. Only Greece, Ireland and Spain saw lower levels of new orders.
'Business conditions in the euro zone manufacturing sector improved for the first time since May of last year, driven by accelerating growth of output and new orders and moderating job losses,' Markit said. However, uneven results across the bloc were causing concern.
The euro zone economy shrank by an upwardly-revised 0.2% in the second quarter and 2.5% in the first quarter.
