Eurozone Business Activity Expands For First Time In Six Months In March

Business activity in the Eurozone expanded for the first time in six months in March, according to data compiled by IHS Markit.

• The headline IHS Markit Eurozone Composite PMI rose to 52.5 in March from 48.8 in February. The latest figure is the first reading above the 50.0 no-movement since September. The expansion is also the largest recorded since July 2020.
• Manufacturing output growth accelerated to the highest since data available dating back to 1997, led by a surge of production in Germany. 
• The service sector recorded a seventh successive monthly fall in business activity due to the COVID-19 pandemic.
• Inflation rose to a degree last seen in January 2019, as goods prices rose steeply and posted the largest gain for almost a decade.
• While the latest data is encouraging, the slow roll-out of vaccines and third waves of infections suggest that this may only be a short-term peak.