Euro zone business activity unexpectedly grew this month, a preliminary survey showed, but with much of Europe suffering a third wave of coronavirus infections and renewed lockdown measures, that may not last through April.
Even the most optimistic respondent in a Reuters poll had forecast it would rise to 51.0, while the median predicted only a modest increase to 49.1. A rush of new orders in anticipation of an easing of lockdown restrictions, and Britain's swift roll-out of COVID-19 vaccines, also prompted a much stronger rebound for British companies, who are outside the euro zone and the European Union.A flash PMI covering the euro zone services industry rose to 48.8 from February's 45.7, still in contractionary territory but its highest reading since August, and well above the median expectation in a Reuters poll for 46.0.
An index measuring output, which feeds into the composite PMI, jumped to a survey high of 63.0 from 57.6.