Manufacturing activity in the eurozone expanded in September for the first time in seven months, according to the latest purchasing managers' index (PMI) report. The manufacturing sector purchasing managers' index rose to 50.1 in September from 49.1 in August, where a reading above 50 indicates expansion. The figure was ahead of analysts' forecasts of a rise to 49.8. The new orders component rose to 52.0 from 50.1, the highest level since August 2002, indicating that companies are seeing stronger demand as the global economy recovers, led by the US and Japan.
The recovery was led by Germany, the eurozone's largest economy. Its PMI rose to 50.2 in September from 48.8 in August - showing the first growth since July 2002 - while France and Italy posted the same performance, edging up to 49.8 from 47.9. The Irish manufacturing sector also expanded in September, its first growth in a year. The PMI rose to 50.4 from 48.1 in August. However, the growth in business failed to translate into new jobs and manufacturing employment fell for the thirteenth month running, although the rate of job shedding was only modest and unchanged from August. //www.fxcentre.com