Boost in euro zone manufacturing

There is further evidence the euro zone is bouncing back from its worst recession in decades.

Last month the euro zone manufacturing sector expanded for the first time in 17 months, and new orders have reached a level not seen in over two years.

The good news comes in the Markit Eurozone Manufacturing Purchasing Managers Index. It rose to 50.7 in October, up from 49.3 in September.

The 50 mark divides growth from contraction, and this is the first time the reading has been above 50 since April 2008.

Observers say the European Central Bank has little reason to raise interest rates from their historic low of 1 percent.

However, some European countries are doing better than others, with a divergence among the four big nations.

Germany and France are growing at reasonable levels while Spain and Italy continue to see weakness.

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tags: Euro, Eurozone