Euro zone business activity expanded last month for the first time since May 2023 but the recovery was uneven with a stronger than expected upturn in the bloc's dominant services industry offsetting a deeper downturn in manufacturing, a survey showed.
HCOB's composite Purchasing Managers' Index for the currency union, compiled by S&P Global and seen as a good gauge of overall economic health, climbed to 50.3 in March from February's 49.2, improving on a preliminary 49.9 estimate."Finally some good news again.
The services PMI jumped to 51.5 from 50.2, above the flash estimate of 51.1 and its highest reading since June. That comes after a sister survey released on Tuesday showed the downturn in manufacturing deepened last month although it did show some tentative signs of recovery."It's particularly encouraging to note that new business has resumed growth after an eight-month dry spell. This favourable trend is expected to persist, fuelled by wage growth outpacing inflation, thus bolstering the purchasing power of households," de la Rubia added.
With the services industry returning to growth overall optimism about the year ahead soared. The composite future output index leapt to 61.8 from 60.5, a level not seen in over two years.