Economic activity in the euro zone reached a high for 2016 in October, according to fresh figures released on Monday.
"The euro zone economy showed renewed signs of life at the start of the fourth quarter, enjoying its strongest expansion so far this year with the promise of more to come," Chris Williamson, chief business economist at IHS Markit, said in a statement.
After the release, the euro continued hovering close to a seven month low, trading at USD 1.0882 at 9.00 a.m. London time. It fell to its lowest level against the dollar since last March on Friday to USD 1.0859.
German reboundThe German economy showed signs of rebound on Monday, with a significant increase in the private sector. The flash German PMI composite output index stood at 55.1 in October, representing a three-month high.
"The German economy has entered the fast lane again at the start of the fourth quarter, with output growth accelerating from September's recent low," Oliver Kolodseike, an economist at IHS-Markit said in a statement.
In September, the country's PMI stood at 52.8 – a 16-month low. According to Kolodseike, "the improvement in the PMI in October lifts hopes that the weaker expansions we have seen in the past two months were just a temporary soft patch, rather than the beginning of a serious slowdown."
France left behind?
Earlier on Monday, data showed the French purchasing manufacturers' index reaching the lowest figure in two months, falling to 52.2 in October, compared to 52.7 in September.
Growth in the euro zone still remains fragile and unbalanced despite assistance by the region's central bank. President Mario Draghi of the ECB (European Central Bank) said during a press conference last week that the central bank wasn't considering ways to taper its quantitative easing program. However, he added that that an abrupt end would be unlikely.
The ECB's quantitative easing program is currently scheduled to end in March 2017 but market watchers anticipate an extension to be announced before the end of the year.
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