Euro Area PMIs strengthen in October as manufacturing and services activity expands

[Worker Operating Angle Grinder with Sparks Flying During Metal Cutting]

* The composite PMI in the Euro Area increased to a 17-month high of 52.20 points in October from 51.20 points in September.
* Manufacturing PMI in the Euro Area increased to 50 points in October, a 2-month high, from 49.80 points in September.
* Services PMI in the Euro Area increased to 52.60 points in October from 51.30 points in September.
* The strongest increase in new orders for two-and-a-half years supported a faster expansion in Eurozone business activity in October, according to provisional PMI survey data.
* Meanwhile, employment returned to growth as levels of backlogged work stabilized. The rate of input cost inflation eased and was weaker than the series average, but prices charged were raised at the sharpest pace in seven months.
* Companies remained optimistic that output would rise over the coming year, but sentiment waned at the start of the final quarter of the year.
* "The European Central Bank, which pays particular attention to inflation in the service sector, is likely to see this data as confirmation of its stance not to implement further interest rate cuts,” Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank said.

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