Eurozone manufacturing activity barely expanded in October, with the final HCOB PMI coming in at 50.0, up marginally from 49.8 in September. National readings showed uneven trends: Greece and Spain led with readings above 52, while Germany (49.6) and Italy (49.9) hovered just below the neutral mark. France and Austria remained in contraction, both at 48.8.
Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, described the improvement as a “very delicate sprout of economic recovery.” Output has risen for eight consecutive months, but new orders remain stagnant, suggesting that growth lacks momentum. The survey also showed that overall demand across the Eurozone remains subdued, with factories struggling to generate fresh business despite tentative output gains.
The regional breakdown highlights persistent divergence. Germany’s factory sector remains fragile, France’s is in recession, and Italy’s shows only persistent weakness. Meanwhile, Spain’s moderate expansion stands out but offers limited offset. De la Rubia warned that France’s political tensions and renewed production slump are weighing on cross-border demand, acting as a drag on its trading partners and complicating hopes for a broader industrial rebound heading into year-end.
 and Italy (49.9) hovered just below the neutral mark. France and Austria remained in contraction, both at 48.8.){kind=link}