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European factories avoid contraction

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Bloomberg
Last Updated : Oct 23 2014 | 9:44 PM IST
The euro-area economy may have moved one step away from another contraction.

A Purchasing Managers Index for the manufacturing industry unexpectedly rose to 50.7 in October from 50.3, London-based Markit Economics said on Thursday. Economists surveyed by Bloomberg News predicted a drop to 49.9. A reading below 50 indicates contraction. A measure for services held at 52.4.

The numbers suggest that the Euro area "has so far avoided a slide back into recession this year," said Chris Williamson, chief economist at Markit in London.

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First Published: Oct 23 2014 | 9:23 PM IST

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