| Euro zone manufacturing sector expands for the first time in 17 months |
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02/11/2009 14:46 (19 Day 00:29 minutes ago) | |||||
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The FINANCIAL -- A key survey showed on November 2 that the euro zone manufacturing sector expanded in October for the first time since May 2008.
The U.K. manufacturing Purchasing Managers Index posted its strongest growth for two years as new orders surged. It rose to 53.7 in October from 49.9 in September, according to Markit Economics and the Chartered Institute of Purchasing and Supply, The Wall Street Journal reported. A reading above 50 indicates the sector is expanding, while a reading below 50 indicates it is contracting.
According to Markit Economics, the PMI for the euro zone's factory sector rose to 50.7 from 49.3 in September, the index's first growth since May 2008, the same source wrote.
'Today's data suggest that the recovery in the euro area is starting to gather pace ... We remain cautious about the economic outlook in the months ahead,' said Colin Ellis at Daiwa Securities, Reuters informs.
But there was a divergence among the big four nations with Germany and France growing at reasonable levels while Spain and Italy continued to see weakness, according to the same source. Earlier figures showed the German manufacturing sector expanded for the first time in 15 months and the French sector grew at its fastest pace since November 2006 as output soared. However, in Spain the sector continued to contract, and by more than forecast, while in Italy manufacturing activity edged closer to expansion territory.
The wall Street Journal wrote that the euro-zone manufacturing PMI is based on data from Germany, France, Italy, Spain, Ireland, Austria, Greece and the Netherlands, which account for about 92% of the bloc's manufacturing activity.
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