Business activity in the Eurozone saw an expansion in the previous month for the first time since May 2023, as indicated by a survey that reveals an uneven recovery.
The composite Purchasing Managers’ Index (PMI) for the currency union, a reliable measure of economic health compiled by S&P Global, rose to 50.3 in March from 49.2 in February, surpassing the preliminary estimate of 49.9.
This rebound pushed the index above the crucial 50 mark, signaling growth after a period of contraction.
Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, expressed optimism about the gradual stabilization of the service sector, noting a shift towards moderate growth in March following a period of stability in February.
While the manufacturing sector faced a deeper downturn last month, there were tentative signs of recovery. However, the demand for services surged, with the new business index rising to 51.4 from 49.8.
De la Rubia highlighted the trend of resumed growth in new business, supported by wage growth outpacing inflation, which enhances household purchasing power.
The composite future output index spiked to 61.8 from 60.5, reaching a level unseen in over two years.
