The European largest economy, Germany, continued to grow in October even as Spain-Catalonia political unrest deepened in the region.

According to the IHS Markit report, Manufacturing Purchasing Managers Index expanded 60.5 in October, slightly below the 60.4 recorded in September but higher than the 60.2 predicted by experts.

Reading above 50 indicates expansion and vice versa.

Increasing new orders amid rising inflation pressures continued to strengthen manufacturing activities in Germany. Allowing manufacturers to raise selling price and increase new job creation to meet demand. Job in the private sector rose to its highest since April 2011.

However, consumer spending is expected to slow in the third quarter of the year according to the report, but growing manufacturing and constructing sectors will likely offset the deficit and continue to support the economy.

Growth in the services sector dipped slightly in the month, declining from 55.6 in September to 55.2 in October. This is below the 55.5 expected.

The economic fundamentals remained strong and projected to grow at 2 percent rate in 2017, higher than the previous forecast of 1.5 percent. This represents the strongest rate since 2011.

“Although the headline flash Composite Output PMI dipped slightly in October, the fundamentals remained strong and the economy has carried robust growth momentum into the closing stages of the year,” said Phil Smith, principal economist at IHS Markit.

Meanwhile, business sentiment rose to 17.6 in October. While, the Euro common currency remained fairly stable against the US dollar after declining to $1.1753 a week ago.