Euro zone economic activity has picked up sharply this month as easing coronavirus restrictions spurred the bloc’s services sector, the Purchasing Managers’ Index (PMI) survey showed.
IHS Markit’s preliminary composite PMI jumped to a five-month high of 55.8 in February from 52.3 in January, well above the Reuters poll’s expectation of 52.7.
“The eurozone economy regained strength in February as easing of virus-fighting restrictions led to renewed demand for many consumer services such as travel, tourism and recreation,” said Chris Williamson, chief economist at IHS. Markit.
The preliminary services PMI jumped to 55.8 from 51.1, a five-month high and above all forecasts in a Reuters poll, whose median was up a modest 52.0. A reading above 50 indicates growth.
Factories had another solid month even as the manufacturing PMI dropped slightly to 58.4 from 58.7 in January. The production sub-index was at 55.6 from 55.4.
With the economy reopening, and amid hopes that the worst of the pandemic is over, optimism has improved. The service sector expectations sub-index rose to 68.7 from 67.2.
The economic recovery took place despite the fact that prices charged by companies rose at the strongest pace since the beginning of the historical series in 2002. The composite sub-index of production prices rose to 62.7 from 61.9.
Source: CNN Brasil
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