Good news for the eurozone. Private sector economic growth accelerated in March to its highest level in a decade, thanks to the dynamism of the services sector, according to the Flash PMI released Friday by S&P Global.
The index, calculated on the basis of company surveys, reached 54.1, after 52 in February, rising for the fifth consecutive month. A figure above 50 indicates growth in activity, while a figure below indicates a decline.
"The latest survey data shows a level consistent with a GDP increase of 0.3% for the first quarter as a whole" compared to the previous quarter, said Chris Williamson, economist for S&P Global, quoted in a statement. "Growth has rebounded from the lows of late 2022 as concerns about the situation in energy markets and the risk of recession have partly dissipated," he said, also referring to the easing of inflationary pressures and improving supply chains.
"Very unbalanced" growth
However, growth in the euro zone is "very unbalanced", because it relies "almost exclusively on the performance of the services sector" while "the manufacturing sector is almost at a standstill, struggling to maintain its production levels in the face of the current decline in demand", worries Chris Williamson.
Industrial activity has also deteriorated, as "the volume of new orders received by manufacturers in the euro area has fallen again". Production levels were only supported by "pending order processing," according to S&P Global. By country, overall activity increased for the second consecutive month in France and Germany, with less sustained growth in Germany.
- Economy
- Euro area
- Growth