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Euro area · Inflation & data · Source: S&P Global
Euro area factories keep growing in October as input costs climb, PMI shows
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Summary: Euro area manufacturing grew for a ninth month in October, according to S&P Global's purchasing managers' survey, though order growth slowed. Input costs rose at the fastest pace in five months, and supplier delays got worse.
What happened
The S&P Global Eurozone Manufacturing PMI came in at 52.7 in the final October reading. That was slightly below September's 52.9, the highest since May 2022, and above the flash estimate of 52.4. The output index slipped to 52.8 from 53.6, a four-month low that is still above the survey's long-run average.
Other points from the release:
- New orders grew more slowly overall, even as export orders, which include trade within the euro area, rose at the fastest pace in just over four and a half years.
- Factories added staff for a third straight month.
- Purchasing rose at the fastest rate since May 2022, and firms built up input stocks for the first time since December 2022.
- Delivery times lengthened the most since June.
- Input prices rose at the fastest pace since May, and firms raised selling prices sharply.
Six of the eight countries in the survey grew. France and Italy were the exceptions, with both returning to contraction.
Background
The survey was carried out on 12–23 October and covers around 3,000 manufacturers. S&P Global's Chris Williamson said the growth spell, which began in February, has been helped by defence spending, precautionary stockbuilding and changing trade patterns due to US tariffs. He added that the latest data "add to pressure on the ECB to hike rates further". Reuters noted that the ECB kept rates unchanged last week.
Why it matters for markets and crypto
Rising costs in industry can pass through to consumer prices, which is what central banks watch when deciding on interest rates. Changes in rate expectations affect borrowing costs and financial conditions across markets, including digital assets. This survey relates to the wider economy and does not express a view on any asset.
What to watch next
- December 2026: the ECB's next policy meeting. According to Reuters, economists it polled last month expect a rate increase; that is a forecast.
- Coming weeks: official euro area inflation and industrial data from Eurostat, to check whether the survey's price signals show up in hard numbers.
Sources
- S&P Global, "S&P Global Eurozone Manufacturing PMI" news release, October 2026 data, 2 November 2026
- Reuters via Investing.com, "Euro zone factory growth eases in October but remains solid, PMI shows", 2 November 2026
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