Eurozone Manufacturing Output Sustains 'Solid' Growth in October Amid Rising Supply-chain Pressures

06:03 AM EST, 11/02/2026 (MT Newswires) -- The euro area's manufacturing sector continued to show "solid" growth in October, although new orders grew at a slower rate amid higher input prices and rising supply chain pressures due to the wars in the Middle East and Ukraine. The S&P Global Eurozone Manufacturing PMI came in at a two-month low of 52.7 in October, compared with the previous month's 52.9 and the flash estimate of 52.4, according to final data from S&P Global published Monday. The latest reading remains above the neutral 50 threshold. "Another solid PMI reading extends the eurozone's best growth spell for manufacturing for over four years. The sustained growth recorded since February paints an encouraging picture of resilience for the manufacturing sector, which has been buffeted by the headwinds of tariffs and conflicts in the Middle East and Ukraine, and in particular the surge in costs and supply difficulties that these have caused," said S&P Global Market Intelligence Chief Business Economist Chris Williamson. "Instead, increased defence spending, precautionary inventory building, diversification and changing trade patterns due to US tariffs have created growth opportunities for many producers." Six of the eight eurozone countries covered by the survey reported manufacturing growth in October. Only France, which is experiencing further stress from local political uncertainty, and Italy, recorded PMI readings in the contraction zone. Manufacturers across the bloc saw a continued increase in factory output, albeit at a softer pace, as overall sales growth eased. Exports, including intra-eurozone trade, saw their strongest rise in just over four-and-a-half years, despite a slowdown in total new business intakes. Meanwhile, business optimism regarding output growth over the next 12 months weakened, falling below the series average. "Furthermore, with input cost inflation surging sharply higher again in October, climbing to one of the highest rates seen over the past four years thanks to higher energy prices and supply bottlenecks, the latest PMI data add to pressure on the [European Central Bank] to hike rates further in the coming months, providing another headwind to businesses," Williamson added.