The Markit Eurozone Purchasing Manager’s Index for October rose to 53.7 from 52.6 in September and above expectations of 52.8. The October reading is the highest so far this year. The increase was mainly caused by Germany, with growth there achieving substantial momen­tum, reaching the second largest monthly increase for this year.

Meanwhile, the rate of growth slowed in France. Output growth among the other eurozone countries rose from Septem­ber’s 21-month low but was still one of the lowest  in the past two years. The reading for the manufacturing sector hit a 30-month high of 53.3, above market expectations of a rise to 52.7 and September’s reading of 52.6.

In the meantime, UK economy growth covering a full quarter since the EU referendum showed that GDP grew more than the forecast of 0.3 per cent in the third quarter. The Office for National Statistics Office (ONS) revealed last week that GDP grew by 0.5 per cent from July to September, less than the 0.7 per cent growth recorded in the April to June quarter. The ONS said that GDP growth recorded in the last quarter is lower than the average quarter-on-quarter growth of 0.6 per cent seen since the first quarter of 2013.

On a year-to-year basis GDP rose by 2.3 per cent compared to an estimate of 2.1 per cent. Growth in he third quarter was mainly due to an increase in the services industry of 0.8 per cent, which was offset by a fall in output of 1.4 per cent in construction, 0.7 per cent in agriculture and 1.0 per cent in manufacturing.

In the US, a Conference Board report showed that consumer con­fidence decreased by more than ex­pected in October. The board stated that its consumer confidence index declined from the previous reading of 103.5 to 98.6, falling short of expectations of 101.5. Lynn Franco, director of Economic Indicators at the board, said “consumers’ assessment of current business and employment conditions softened, while optimism regarding the short-term outlook retreated somewhat”.

This report was compiled by Bank of Valletta plc for general information purposes only.

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