Eurozone services PMI improves, composite PMI hits 11-month high

FXStreet (Mumbai) - Eurozone Services Business Activity Index rose to 54.2 in March from 53.7 in February to register an expansion in output for the twentieth successive month. However, the actual figure printed below its flash estimate of 54.3.

Markit Eurozone PMI Composite Output Index rose to an 11-month high of 54.00 in March from 53.3 in February.

Business activity in the service sector rose at the fastest pace in eight months, spurred on by a sharpest intake of new work since May 2011. The level of business optimism rose to a 46-month high. Input price inflation accelerated to an eight-month high in March mainly due to higher staffing costs, despite which average output charges decreased for the fortieth month in a row.

As per Chris Williamson, Chief Economist at Markit, “The PMIs are indicating somewhat sluggish GDP growth of 0.3% for the first quarter. However, the important message from the survey data is that the pace of expansion looks set to gather pace in coming months. With the ECB’s policy of quantitative easing also set to provide a boost to the nascent recovery in coming months, the economic outlook is therefore brightening as we expect to see more upward revisions to growth forecasts for the year.”

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