Eurozone Manufacturing: A Fragile Recovery Amid Persistent Challenges

Eurozone manufacturing activity stagnated in October as new orders flatlined and employment declined, according to a Monday survey. Despite this, production rose for an eighth consecutive month. The HCOB Eurozone Manufacturing Purchasing Managers' Index, compiled by S&P Global, held at 50.0, indicating neither growth nor contraction, slightly up from September's 49.8.

Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, described this as a "very delicate sprout of economic recovery" in the sector. While output expanded marginally, export orders fell for a fourth month, pushing demand for European goods down. The industry faced its longest employment contraction in over two years.

The outlook varies across the region, with Greece and Spain showing improvements, while Germany and France remained in contraction. Manufacturers continued to reduce inventory, and although input costs stayed the same as September, there was a marginal increase in prices charged to customers. Business confidence dropped for the second month, affected by economic instability.