Euro zone business activity has been stronger than expected this month, a survey showed today, although prices also rose at a record pace.Some of that growth came from a rebound following the lifting of Covid restrictions, and the outlook is murky as supply chain issues caused by the coronavirus pandemic have worsened after Russia's invasion of Ukraine.
But it was still comfortably above the median 53.9 forecast in a Reuters poll. Anything above 50 indicates growth. "The war has aggravated existing pandemic-related price pressures and supply chain constraints," he added.The output prices index jumped to 65.7 from 62.3 suggesting inflation, already a record 5.8% in February, has further to climb. The ECB would like it at 2%.
A PMI covering the bloc's dominant service industry fell to 54.8 this month from 55.5 but was ahead of the Reuters poll estimate for 54.2.