Eurozone Growth Climbs to Five-Month High as Prices Reach All-Time Highs

Source: IHS Markit

Eurozone growth grew to a five-month high in February, with average prices reaching historic highs during the month. EZU was down 0.41%, and VGK down 0.79% after hours.

• The Eurozone PMI Composite Index clocked in at 55.8 in February, following 52.3 in January. The 3.5-point increase is the biggest monthly gain since March 2021.
• The rebound comes after two straight months of deceleration due to the increase in COVID-19 omicron cases which caused containment measures to be put in place.
• The services index also stood at 55.8, following 51.1 in the previous month. This is the highest in three months, as delivery delays declined to a 13-month low.
• Manufacturing output climbed to a five-month high of 55.6, up from 55.4 in January, while total manufacturing jumped to a two-month high of 58.4 from 58.7.
• The latest manufacturing index is the fastest growth since September 2021 driven by improved supply availability, and increased demand.
• Average prices for goods and services surged to an all-time high, as firms passed on the higher costs to end-users.
• Services prices recorded a record-high during the month while manufacturing prices climbed to hover around all-time highs.