Euro zone factory growth eases in October but remains solid, PMI shows
SPY•The euro zone manufacturing PMI dipped to 52.7 in October from 52.9 in September, above a preliminary estimate of 52.4. New orders grew more slowly as input costs rose at the fastest pace in five months.
1. Growth remains solid
The S&P Global Eurozone Manufacturing PMI eased to 52.7 in October from 52.9 in September, but remained above the preliminary estimate of 52.4. Readings above 50 indicate growth. Six of the eight euro zone countries tracked recorded growth; France and Italy were the outliers.
2. Costs and supply strains rise
Factory output fell to a four-month low of 52.8 from 53.6, while manufacturers added staff for a third straight month. Operating costs rose at their fastest rate in five months, and firms raised selling prices sharply. Supply-chain strains intensified, delivery times lengthened to their worst since June, and manufacturers increased purchasing volumes at the fastest pace in nearly four and a half years.
