Eurozone manufacturing continued to expand at a healthy pace in October according to the region's purchasing managers.
Data published by IHS Markit on Tuesday showed that the upturn was led by strength at the core of the eurozone, with Germany, Austria, the Netherlands and France all turning in robust performances.
Purchasing managers index (PMI)
The eurozone manufacturing PMI hit an 80-month high in October, rising to 58.5 from 58.1 in September. The benchmark PMI level of 50 is where economic activity begins to expand.
Growth in output and new orders remained elevated in October, the report said, while the pace of job creation accelerated to a record high.
Germany was the top performer with its manufacturing index reaching the lofty level of 60.6. The Netherlands hit an 80-month high of 60.4, while Austria's PMI hit 59.4.
Italy's was also at an 80-month high of 57.8, while French PMI stood at 56.1 and Spain reached a 29-month high of 55.8.
Input prices rose at their fastest pace in six months, with stronger inflation noted in nearly all nations covered by the PMI survey.
Some of these rises in raw materials and production costs were passed on to clients in the form of higher selling prices, the survey found, as output prices rose for the 13th-successive month.
“Eurozone factories started the fourth quarter with increased vigour, with the sector’s growth spurt showing no sign of abating," said Markit's Chris Williamson.
He added: “With output, demand and price pressures all rising, the survey data support the ECB’s recent shift in policy towards lower asset purchases in 2018.”
Claus Vistesen at Pantheon Macroeconomics said: "The euro area manufacturing sector is in fine form. New orders and output are rising, while substantial work backlogs continue to support a steady increase in employment."
The markets reacted with gains for the euro. Against the dollar, the single currency rose 0.2% to $1.1637 and against the pound it climbed 0.2% to €1.1379.
European stock indexes were mixed. The EuroStoxx 50 was down 0.15%, however, at 3,696.5.