The eurozone's manufacturing sector improved marginally last month, according to the latest purchasing managers' index (PMI), although it continued to contract. The PMI edged up to 49.1 in October from 48.9 in September, indicating that manufacturing activity shrank again, but at a slighter slower pace than in the previous month. A reading under the critical 50.0 level indicates that the sector contracted.
Though weaker than expected, the figure compares relatively favourably to the state of the sector in Ireland, where the PMI dropped to a 10-month low of 48.8, continuing a downward trend that has seen it fall for three of the last four months. NCB, the compilers of the Irish PMI, said export demand slumped in October, falling at its fastest pace since last December. Meanwhile, British manufacturing also remained sluggish in October, according to its latest sector readings. However, unlike the eurozone and Ireland, manufacturing activity in the UK expanded for the third consecutive month, with the PMI edging up to 50.5 from 50.3 in September. The reading was in line with expectations. //www.fxcentre.com