-- Euro-area private-sector business activity reached its highest level in a year - suggesting the region’s economic rebound is taking hold.S&P Global’s purchasing managers’ index rose to 52.3 in May - exceeding analyst forecasts and coming in above the 50 threshold that signals growth for a third month.“This looks as good as it could be,” said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank. “The euro zone’s economy is gathering further strength.
“While people love to compare the performance of economies, finger-pointing to the possible weaknesses and strengths, the good news here is that overall, both economies move in tandem,” de la Rubia said. “This means that there are good chances for France to catch up eventually in the services sector, which would put euro-zone growth on a sounder footing.”
The growth, though, masks a prolonged slump in the industrial sector - particularly in Germany, which has suffered from weak global demand and the spike in energy prices that followed Russia’s invasion of Ukraine.The factory malaise may be slowly coming to an end, according to S&P Global, which predicted the euro area may record growth in gross domestic product of 0.3% in this quarter - matching the pace for the previous three months.
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