The economic activity in the Eurozone private sector accelerated in March to nearly 6-year high, due to solid economic upswing in Germany and France, according to the latest definitive results of the survey of IHS Markit. The growth reached its peak despite a certain slowdown in activity in Italy and Spain.
So the Purchasing Managers Index (PMI) of IHS Markit, measuring overall business activity, rose in March to 56.4 points from 56.0 points in February and slightly below the preliminary data on the level of 56.7 points. Despite the weak bearish correction the business activity remains in the expansion for 45 consecutive months (index is above the key level of 50 points) and reached in March 71-month high (the highest level since April 2011).
The PMI index for the services sector also grew slightly less than expected from 55.5 points in February to 56.0 points in March, while preliminary index was at a level of 56.5 points.
The new orders, however, grow at a solid pace since April 2011, while the index measuring employment – the fastest pace in nearly 10 years, while overall business optimism rose to a record high, thus maintaining positive sentiment in the private sector.
The expansion, evidenced by the latest data on PMI, is not really that fast growth, indicated by estimates, but still evidence of impressive economic growth, according to the economists. The data show the basis for large-scale upswing among the largest members of the Eurozone.