Eurozone manufacturing growth remains solid in October despite supply pressures

Manufacturing output across the eurozone expanded solidly in October, although supply chain bottlenecks and cost pressures intensified, according to survey data published on Monday.

The headline seasonally adjusted S&P Global Eurozone Manufacturing Purchasing Managers' Index stood at 52.7 in October, down slightly from 52.9 in September.

The reading remained comfortably above the 50 no-change mark, signaling expansion across the single-currency area for the ninth straight month.

Six of the eight surveyed eurozone countries registered manufacturing growth, while France and Italy were the only member states to record contractions.

Factory production levels increased for the 10th consecutive month, though the rate of expansion moderated to a four-month low amid a slowdown in total new order growth.

In contrast, export business rose at the sharpest rate in just over 4.5 years.

Goods producers added staff for the third consecutive month, while backlogs of work increased at the joint-fastest pace since May 2022.

Firms stockpiled inputs to the greatest extent since December 2022 to protect against supply disruptions, as vendor delivery delays worsened to the greatest degree since June.

Input price inflation surged to a five-month high, driven by higher energy prices and raw material shortages.

In response, manufacturers raised their selling prices sharply, maintaining the pace of price increases seen in September.

While companies remained optimistic about output growth over the next 12 months, positive sentiment slipped below the survey's historical average.