Brussels:Manufacturing output in the eurozone showed solid growth in October, though faced with intensified supply chain bottlenecks and cost pressures, as indicated by newly released survey data.

According to Anadolu Agency – English, the S and P Global Eurozone Manufacturing Purchasing Managers' Index was recorded at 52.7 in October, a slight decrease from September's 52.9. This reading remains above the 50 threshold, marking expansion in the eurozone for the ninth consecutive month.

Out of the eight surveyed eurozone countries, six reported manufacturing growth, whereas France and Italy experienced contractions. This growth in factory production has persisted for ten months, although the expansion rate has slowed to a four-month low due to a decrease in new order growth. Export business, however, surged at the fastest rate in over four and a half years.

The manufacturing sector also saw an increase in staffing for the third month in a row, with backlogs of work growing at the fastest pace since May 2022. Companies have been stockpiling inputs significantly since December 2022 to mitigate supply disruptions, as vendor delivery delays have worsened. Input price inflation climbed to a five-month high, driven by rising energy prices and raw material shortages, leading manufacturers to increase their selling prices sharply, maintaining the price increase pace seen in September.

Despite these challenges, manufacturers remain optimistic about output growth over the next 12 months, although the positive sentiment has dipped below the survey's historical average.