Euro zone manufacturing PMI beats forecasts

This, combined with a further drop in inventories of finished goods, suggests that production growth may rebound in coming months. While the uptick may well be a consolation for policy makers concerned with weaker global trade and too-low inflation becoming entrenched, it risks being too small to put the region's fragile recovery onto a more solid footing. It has, however, been above the 50 mark that separates growth from contraction for over two years.

This survey contrasts with other recent measures of the economy.

Firms in the sector have also been increase their staff levels as a response to higher output requirements and while there was an increase this month the employment index showed that October was the weakest increase since December 2013.

Markit, the compiler of the survey, says the rate of expansion in manufacturing production continued to ease in October, the third successive month in which a slowdown has been recorded.

The Confederation of British Industry said last week that factory orders suffered their biggest fall in three years in the three months to October.

Tom Bouchier, managing director of robotics firm FANUC United Kingdom said: 'The increase can be attributed to a strong demand from both the United Kingdom and overseas.

Euro zone's manufacturing purchasing manager's index for October came in at 52.3, ahead of September's print and forecasts for 52.0.

Reserve Bank Governor Raghuram Rajan on September 29 effected a more-than-expected interest rate cut of half a per cent to spur the economy. According to a report released by research group Markit, the Eurozone manufacturing PMI rose to 52.3 as compared to a reading of 52.0 in the preceding month. "This suggests that output is likely to remain under pressure".

He added: 'With factory production lacking vigour, employment growth sagging to an eight-month low and output prices falling at the fastest rate since February, it's easy to see why the European Central Bank are considering additional stimulus'.

"We doubt that exports will see sustained growth, given that they are uncompetitive at the current exchange rate".

Spain's manufacturing output will give a fresh view on Europe as a whole. "Upcoming survey data will show how effective the central bank's effort to revive the economy has been". U.S.: ISM Manufacturing Index (1500 GMT) The manufacturing sector is flirting with recession, according to the September figures published by the Institute for Supply Management.