Business activity in the euro zone hit a 46-month high in
March, according to data released on Tuesday, bolstering hopes that
growth in the region is becoming more entrenched. Flash euro zone composite Purchasing Manager's Index (PMI) data from Markit came in at 54.1 in March, up from 53.3 in February, marking the fastest growth in almost four years. The composite reading measures both manufacturing and services activity, with the 50-point mark separating contraction from expansion.
"The improvement was broad-based by sector. Growth of
services business activity and new business both hit the highest since
May 2011, accompanied by stronger rates of increase in both
manufacturing output and new orders to the highest since May of last
year," Markit said in a release.
Chris Williamson, chief economist at Markit, said the data was "welcome news" for the region, which is awaiting signs that the European Central Bank's (ECB) new
quantitative easing program is stimulating the real economy.
Given the data, Williamson said he expects gross domestic product (GDP) to have expanded by 0.3 percent in the first quarter of the year.
The data comes after consumer confidence jumped to a near-eight-year high in March, flash data released by the European Commission on Monday showed -- the sharpest monthly gain in confidence since April 2009.
Howard Archer, chief U.K. and European economist at IHS, said that both data show that "euro zone economic activity is strengthening as very low oil prices, a weak euro, major ECB stimulus and much reduced fiscal headwinds foster an improved growth environment."
Chris Williamson, chief economist at Markit, said the data was "welcome news" for the region, which is awaiting signs that the European Central Bank's (ECB) new
quantitative easing program is stimulating the real economy.
Given the data, Williamson said he expects gross domestic product (GDP) to have expanded by 0.3 percent in the first quarter of the year.
The data comes after consumer confidence jumped to a near-eight-year high in March, flash data released by the European Commission on Monday showed -- the sharpest monthly gain in confidence since April 2009.
Howard Archer, chief U.K. and European economist at IHS, said that both data show that "euro zone economic activity is strengthening as very low oil prices, a weak euro, major ECB stimulus and much reduced fiscal headwinds foster an improved growth environment."
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