Eurozone business activity improves in October

Business activity in the eurozone has expanded in October at the fastest pace so far this year.

Germany was again the star.

According to the latest surveys of companies conducted by IHS Markit, the region’s largest economy recovered from weakness in the summer as both manufacturing and services picked up.

France’s overall private sector activity also expanded but at a slower pace, with the service sector weaker than expected.

IHS Markit’s eurozone flash composite Purchasing Managers’ Index, seen as a good overall indicator of economic growth, jumped to 53.7 from September’s 52.6. It was far above the 50 point mark which indicates growth in activity.

The surveys also found companies have been raising prices at the sharpest rate in more than five years.

The upturn in both business activity and prices is welcome news for policymakers at the European Central Bank, who are running out of ways to stimulate the bloc’s economy.