Investing.com - Manufacturing activity in the euro zone expanded at a faster rate than expected in October, easing worries over the region’s growth outlook, preliminary data showed on Thursday.
In a report, market research group Markit said that its preliminary manufacturing purchasing managers’ index rose to a seasonally adjusted 50.7 this month, up from a final reading of 50.3 in September. Analysts had expected the index to ease down to 49.9 in October.
Meanwhile, the preliminary services purchasing managers’ held steady at a seasonally adjusted 52.4 this month, unchanged from September and above expectations for a reading of 52.0.
The seasonally adjusted Markit Flash Euro Zone Composite Output Index, which measures the combined output of both the manufacturing and service sectors advanced from 52.0 in September to 52.2 in October.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
Commenting on the report, Chris Williamson, Chief Economist at Markit said that, “The survey data are broadly consistent with GDP rising 0.25% in the third quarter, but unless demand picks up soon, growth could weaken again in the fourth quarter and deflationary forces could intensify."
EUR/USD was trading at 1.2659 from around 1.2638 ahead of the release of the data, while EUR/GBP was at 0.7885 from 0.7883 earlier.
Meanwhile, most European stock markets turned higher. The DJ Euro Stoxx 50 rose 0.6%, France’s CAC 40 advanced 0.5%, Germany's DAX inched up 0.6%, while London’s FTSE 100 declined 0.2%.