Euro zone factory boom in October led by Germany

Manufacturing growth in the euro zone boomed in October.

But there's one country that can take most of the credit.

Dragging the euro zone economy out of severely depressed activity was, again, mostly driven by a buoyant Germany.

IHS Markit's final Manufacturing Purchasing Managers' Index climbed to 54.8.

That was its highest reading since July 2018.

Anything above 50 indicates growth.

The news helped European stocks gain on Monday, with the regional Stoxx 600 index up around 1.5 percent by early afternoon.

But economists still see trouble ahead.

One told Reuters that "Germany has done spectacularly well over recent months, but as the lockdowns begin to impact not only on Germany but its main export market it will take the edge off the recovery."

Analysts found other worries in Monday's (November 2) data too.

A flash reading of the overall survey showed activity in the bloc's dominant service sector contracted last month as a second wave of the virus swept across Europe.

Germany and France - the bloc's two biggest economies - have again imposed tough lockdown measures.

The move will deal a further heavy blow to this month as restaurants, gyms and shops are forced to close.

German factories saw record growth in new orders in October

But the country has recently imposed controls almost as strict as the lockdowns of the first phase of the crisis.

That suggests at least some manufacturing activity might be curtailed.