Euro zone business activity accelerated to its fastest pace in seven months in March, driven by a moderation in the long-running downturn in manufacturing, according to a survey. However, growth in the services sector slowed slightly.
The positive trend in the common currency bloc’s economy comes amid rising optimism, fueled by plans for a significant increase in infrastructure and defense spending, particularly in Germany. These plans are expected to further boost the region's economic outlook in the coming months.
The preliminary composite euro zone Purchasing Managers' Index (PMI), compiled by S&P Global and released by HCOB, rose to 50.4 in March from 50.2 in February, marking its highest level since August. This is the third consecutive month the index has stayed above the 50-mark threshold, which separates growth from contraction. However, growth remains modest, and the PMI was slightly below the expected rise to 50.8 in a Reuters poll.
The services sector saw a slight decline in growth, with its PMI falling to 50.4 from 50.6 in February, missing the forecast of 51.0. In contrast, the manufacturing sector showed signs of improvement, with its PMI rising to 48.7 from 47.6 in February, the highest level in over two years. A key indicator of factory output showed expansion for the first time in two years, reaching 50.7 from 48.9, its highest since May 2022.
Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, commented, “Just in time for the beginning of spring, we may see the first green shoots in manufacturing.” He noted that while caution is advised based on a single data point, it’s significant that manufacturers expanded their output for the first time since March 2023.
Inflation pressures persisted, particularly in manufacturing, where firms raised prices in response to higher costs. Both input and output inflation hit their highest levels in seven months. However, services inflation grew at a slower pace.
In a sign of improving business sentiment, employment growth accelerated. The composite employment index increased to 50.1 from 49.2, marking the first time in eight months it has surpassed the breakeven point.
U.S. President Donald Trump's threat of imposing trade tariffs on European countries is a maximalist move designed to force concessions on Greenland, ...
Afghanistan and Qatar have signalled interest in expanding cooperation in investment and agriculture during talks in Doha, as Afghanistan’s defence ...
Five skiers were killed in a pair of avalanches in Austria’s western Alpine regions on Saturday, with two others injured, one critically....
Uzbekistan is entering what regulators describe as the most complex phase of its banking reform, as the country moves to align its financial system wi...
The German and French finance ministers said on Monday that European powers would not be blackmailed and that there would be a clear and united respon...
Inflation expectations for the next 12 months in the eurozone rose to 2.8% in August, up from 2.6% in July, according to the results of a consumer survey published by the European Central Bank (ECB) on Friday.
Eurozone annual inflation reached 2.1% in August, up from 2% in July, Eurostat announced on Wednesday.
The European Parliament is set to vote on Bulgaria's proposed entry into the eurozone today (8 July).
The European Commission is likely to give Bulgaria the green light on June 4 to adopt the euro currency from the start of 2026, several euro zone officials said, making Bulgaria the 21st country to join the single currency area.
Italian Prime Minister Giorgia Meloni said on Saturday (17 January) that concerns over security in Greenland should be addressed within the framework of NATO, describing a ground military intervention as highly unlikely.
Elon Musk is seeking up to $134 billion from OpenAI and Microsoft, arguing that the companies profited unfairly from his early support of the artificial intelligence firm, according to a court filing made public on Friday.
European leaders voiced growing alarm on Sunday over U.S. threats to impose tariffs on eight NATO allies, warning the move could destabilize transatlantic relations and heighten tensions in the Arctic.
Trump administration officials held months-long discussions with Venezuela’s hardline interior minister Diosdado Cabello before the U.S. operation that led to the seizure of President Nicolás Maduro, according to multiple people familiar with the matter.
Syrian President Ahmed al-Sharaa has signed a decree recognising Kurdish language rights, as government forces advanced against U.S.-backed Kurdish-led fighters despite U.S. calls for restraint.
Afghanistan and Qatar have signalled interest in expanding cooperation in investment and agriculture during talks in Doha, as Afghanistan’s defence chief attended a major regional defence exhibition.
U.S. President Donald Trump's threat of imposing trade tariffs on European countries is a maximalist move designed to force concessions on Greenland, according to geopolitical analyst Ana Evans.
The German and French finance ministers said on Monday that European powers would not be blackmailed and that there would be a clear and united response to U.S. President Donald Trump's threats of higher tariffs over Greenland.
An explosion at a steel plate factory in China's northern region of Inner Mongolia killed two people and injured 84, Inner Mongolia Baotou Steel Union said on Monday, adding that eight are missing.
Japan’s Prime Minister Sanae Takaichi said on Monday (19 January) she would call a snap national election on 8 February, seeking a popular mandate for higher public spending, tax cuts and a new security strategy expected to accelerate Japan’s defence build-up.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment