A widely-watched index of manufacturing activity in the 16-nation eurozone showed that the sector expanded in October for the first time since May 2008.

The eurozone's purchasing managers' index (PMI) for the manufacturing sector, published by data and research group Markit, rose to 50.7 points in October, up from 49.3 points in August.

Unchanged on an earlier flash estimate, it was the first time the reading has been above the symbolic 50.0 boom-or-bust line and marks its highest level since April 2008 when it also stood at 50.7.

"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," said Markit's Chris Williamson.

However, uneven results across the bloc were causing concern. "In particular, surging nine-year high growth in France sits uncomfortably with ongoing weakness in Italy and Spain," Williamson added.

"The return to expansion in overall manufacturing activity in October indicated by the PMI supports hopes that the eurozone economy is picking up further in the fourth quarter after a seemingly certain return to growth in the third quarter," commented IHS Global Insight chief economist Howard Archer.

The eurozone economy shrank by an upwardly-revised 0.2 percent in the second quarter and 2.5 percent in the first quarter.