Euro zone manufacturing activity accelerated at its fastest rate in nearly three years last month and inflationary pressures showed further signs of recovery, a survey found today.
The findings will make welcome reading for policymakers at the European Central Bank who have struggled to get growth and inflation up despite years of ultra-loose monetary policy.
Markit's final Purchasing Managers' Index (PMI) jumped to a 33-month high of 53.5 from September's 52.6.
This was ahead of the preliminary flash reading of 53.3 and comfortably above the 50-mark that separates growth from contraction.
A sub-index measuring output, which feeds into a composite PMI due on Friday that is seen as a good overall growth indicator, climbed to 54.6 from 53.8, its highest level since April 2014.
"The euro zone manufacturing sector made a positive start to the final quarter. The broad base of the growth acceleration signalled by the headline PMI was especially pleasing," said Rob Dobson, senior economist at IHS Markit.
New orders came in at their fastest rate in two and a half years even though prices rose for the first time in over a year.
The output price index was at a 16-month high of 50.8, up from 49.9 and its first time above 50 since August last year.
