24 Mar 2015
Eurozone Composite PMI rises to near four-year highs
The Markit Eurozone PM rose from 53.3 in February to 54.1 in March, climbing for a fourth successive month to reach the highest since May 2011.
The flash manufacturing PMI rose to 51.9 in March, from February’s 51.00. The data beat the expectation of 51.5. Meanwhile the service sector PMI rose to a six-month high of 54.3, from 53.7 in February. The services PMI also beat the expectation of 53.9.
The upturn in business activity was fueled by new order growth likewise accelerating further to the highest since May 2011. Employment growth picked up to the fastest since August 2011, with job creation in the service sector at near four-year high. Deflationary pressures eased as average prices charged for goods and services fell at the slowest rate since last July. Input prices showed the largest monthly increase since last July.
As per Chris Williamson, Chief Economist at Markit, “The survey data indicate that the ECB’s quantitative easing has been started at a time when the Eurozone’s economic upturn is already starting to gain traction. This augurs well for the region to enjoy further improvements in business conditions as the year proceeds, helping drive greater business investment and hiring, and thereby ensuring that the recovery becomes sustainable. Worries persist, however, in relation to Greece and Russia, which are a reminder that ongoing recovery is by no means assured.”
The flash manufacturing PMI rose to 51.9 in March, from February’s 51.00. The data beat the expectation of 51.5. Meanwhile the service sector PMI rose to a six-month high of 54.3, from 53.7 in February. The services PMI also beat the expectation of 53.9.
The upturn in business activity was fueled by new order growth likewise accelerating further to the highest since May 2011. Employment growth picked up to the fastest since August 2011, with job creation in the service sector at near four-year high. Deflationary pressures eased as average prices charged for goods and services fell at the slowest rate since last July. Input prices showed the largest monthly increase since last July.
As per Chris Williamson, Chief Economist at Markit, “The survey data indicate that the ECB’s quantitative easing has been started at a time when the Eurozone’s economic upturn is already starting to gain traction. This augurs well for the region to enjoy further improvements in business conditions as the year proceeds, helping drive greater business investment and hiring, and thereby ensuring that the recovery becomes sustainable. Worries persist, however, in relation to Greece and Russia, which are a reminder that ongoing recovery is by no means assured.”