Euro Zone Manufacturing Grows as ECB President Resigns
Euro zone manufacturing activity expanded in October despite rising costs, while European Central Bank President Christine Lagarde announced she will step down in February.
Manufacturing activity in the euro zone grew in October, according to the S&P Global Eurozone Manufacturing Purchasing Managers' Index (PMI), which recorded 52.7. While this represents a slight dip from September's 52.9, S&P Global Market Intelligence noted that the trend extends the region's strongest growth spell for manufacturing in over four years.
Growth eased as new orders slowed and operating costs rose at the fastest rate in five months. Rising input prices, fueled by energy costs and supply-chain disruptions, have increased pressure on the European Central Bank to raise interest rates in December. Despite these headwinds, export orders saw their sharpest increase in over four and a half years, and manufacturers added staff for a third consecutive month. Six of the eight tracked countries recorded growth, though France and Italy remained outliers.
Amid these economic shifts, European Central Bank President Christine Lagarde announced she will step down from her position in February.
