This is good news for the European economy. Economic growth in the private sector in the euro zone accelerated in March to its highest level in ten months, thanks to the dynamism of the services sector, according to the Flash PMI index published on Friday by S
"The latest survey data shows a level consistent with a 0.3% increase in GDP for the whole of the first quarter" compared to the previous one, underlined Chris Williamson, economist for S
However, Eurozone growth is "very unbalanced", as it relies "almost exclusively on the performance of the service sector" while "the manufacturing sector is almost at a standstill, struggling to maintain its production levels in the face of the current decline in demand", worries Chris Williamson.
Industrial activity has also deteriorated, "the volume of new orders received by manufacturers in the euro zone having again fallen". Production levels were only supported by "the processing of backorders", according to S
By country, overall activity increased for the second consecutive month in France and Germany, the increase having been less sustained in Germany. The PMI index reached 54 in France, against 52.6 in Germany, in March.
Across the euro area, "employment growth picked up in March, while the year-ahead outlook for activity remained favorable, despite business concerns over difficulties in the banking and to rising borrowing costs,” commented S
