Eurozone factory growth ‘broadly flat’
A second month of price cutting, alongside only tepid expansion in Germany — the eurozone’s growth engine — and contractions in France and Italy, will be disconcerting for the European Central Bank as it battles to prevent deflation. Economic growth stalled in the second quarter. With inflation at just 0.4% in October, the ECB is facing pressure to introduce more stimulus.
Markit’s final October manufacturing Purchasing Managers’ Index was 50.6, beating September’s 50.3 but shy of an earlier flash estimate of 50.7. October marked the 16th month the index has been above the 50 line that separates growth from contraction.