March 24 () –
The growth of private sector activity in the euro zone accelerated in March thanks to the expansion of the services sector, which more than offset the weakness observed in manufacturing, according to preliminary data from the Purchasing Managers Composite Index (PMI). , prepared by S&P Global Market Intelligence.
Specifically, the composite PMI for the euro zone increased to 54.1 points in March from 52 in February, its best reading in ten months, with an increase in the PMI for services to 55.6 points, compared to 53 .7 from the previous month, while the manufacturing PMI worsened to 47.1 from 48.5 in February, a four-month low.
Thus, the euro zone economy is showing new
“signs of life” as spring approaches, said Chris Williamson, chief economist at S&P Global Market Intelligence, who sees the survey results as equating to growth in
GDP of 0.3% in the first quarter, with an equivalent rate of 0.5% in the month of March alone.
“Growth has picked up from the lows of late last year as recession fears and energy market concerns fade, inflationary pressures ease and unprecedented delays in supply chains seen during the pandemic are being replaced by record improvements in supplier delivery times,” he explained.
Likewise, the expert underlined that business confidence in the euro area is currently showing encouraging resilience in the face of new interest rate increases and the uncertainty caused by the recent tensions in the banking sector.
However, Williamson has pointed out that, despite the fact that inflationary pressures continue to moderate, the rate of increase in prices
charged for products and services remains one of the highest in the study’s history.
“These persistent inflationary pressures, fueled mainly by the service sector and rising wage costs, will cause concern for policymakers, and suggest that further action may be needed to reduce inflation,” he added.
