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.