European production accelerated in October

The European production accelerated in October and the factories have achieved higher rates of activity compared with the previous month, due to the good performance in Germany. The index of purchasing managers in the manufacturing sector for the currency bloc rose to 50.6 points compared to 50.3 points in September. According to the analysts the presentation of the production in the euro area remained broadly unchanged at the beginning of the last quarter, as the industry struggles to recover somewhat lost traction after slowing in the middle of the year. Therefore, production is unlikely to provide any significant boost to the anemic GDP growth of the monetary union.

Activity in factories in Germany accelerated its growth rate in October, the final PMI index hit 51.4 points, recovering from the decline in September, while analysts expected a level of 51.8 points. In Italy, the performance of the manufacturing sector deteriorated to 17-month low in October, taking into account 49 points compared to 50.7 points in September. Forecasts were for a level of 50.6 points. The French manufacturing sector remained in the red for the sixth consecutive month in October, falling to 48.5 points from 48.8 points in the previous month. The market was staked at the level of 47.3 points.

Meanwhile, the activity remained unchanged in Spain, where expectations for a decline to 52.2 points were refuted by holding the level of 52.6 points in October. On Wednesday will have the final results of October of activity in the services sector in Germany, France, Spain, Italy and the Eurozone.