Inventory reductions continued, with volumes of both production inputs and finished goods decreasing to extend a protracted sequence of destocking. Notably, Input costs were unchanged from September, but prices charged were increased marginally.

Looking ahead, eurozone manufacturers were optimistic that output levels would be higher in 12 months' time. However, expectations nudged slightly lower on the month and were weak by historical standards.

The HCOB Eurozone Manufacturing PMI, a measure of the overall health of the eurozone manufacturing sector compiled by S&P Global, posted 50.0 in October, signalling no change in operating conditions when compared to the previous month.

Stagnation follows on from a fractional deterioration in September (49.8). Manufacturing conditions were the strongest in the south of the eurozone during October.

Eurozone manufacturers registered lower employment levels during October, extending the current sequence of job losses to just shy of two-and-a-half years.

Inventory levels were once again lowered across the euro area in October, extending an already protracted period of cutbacks to stocks.

As for price trends, no change in firms' operating costs was signalled by October survey data, following a marginal drop in the prior month.

Looking ahead, eurozone manufacturers were optimistic towards the year-ahead outlook for production. That said, the overall level of positivity declined for a second month in a row and was below its long-term trend.

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