Eurozone business activity grows at fastest pace this year

Business activity has seen its fastest growth this year, indicating fortitude in the face of Brexit uncertainty.

The index showed stronger momentum in Germany but slower growth in France. Picture: AFP/ Daniel Roland.

A survey shows that business activity across the 19 eurozone economies grew in October at its fastest pace so far this year.

The purchasing managers’ index, a measure of activity in services and manufacturing, rose to 53.7 points from 52.6 the month before. The index is on a 100-point scale, with 50 separating growth from contraction.

The index, compiled by research firm IHS Markit, showed stronger momentum in Germany but slower growth in France.

The results, published on Monday, suggest the eurozone is holding up in the face of uncertainty over Britain’s vote to leave the European Union.

Chris Williamson, chief business economist at IHS Markit, said that “with backlogs of work accumulating at the fastest rate for over five years, business activity growth and hiring look set to accelerate further.”