Business conditions improved across the eurozone in October, according to the Markit Eurozone Manufacturing  PMI (purchasing managers’ index).

The index rose to 50.7 from 49.3 in September, the first improvement in business conditions since May of last year.

The PMI is a composite index based on measures of output, orders, employment, inventories and supplier performance.

According to the index, manufacturing output increased for the third month running in October, signalling the strongest monthly expansion since January of last year. France reported the strongest growth in production, followed by Germany. However, output fell in Spain, Ireland and Greece.

Markit chief economist Chris Williamson says: “Business conditions in the eurozone manufacturing sector improved for the first time since May of last year, driven by accelerating growth of output and new orders, and moderating job losses.

“With capacity now coming into line relative to order books, and further growth of production looking likely in coming months as factories restock, conditions are set to improve further. National disparities are a concern, however. In particular, surging nine-year high growth in France sits uncomfortably with ongoing weakness in Italy and Spain.”

Williamson added that despite signs of recovery, continuing job loses “highlighted the fragility of the recovery”.