Euro zone economy growth accelerates to seven-month high, PMI shows

Voice Over: Eurozone business activity grew at its fastest pace in seven months in March. Although growth stayed weak, the data was revealed Monday in the key purchasing managers index, which rose to its highest since August. The key survey showed the blocks, the long running manufacturing downturn eased, but services growth slowed.

The PMI rose to 50.4 this month from February’s 50.2. It has stayed above the 50 mark, separating growth from contraction since the start of the year. AJ Bells, Russ Ma

Reporter: Dax is at an all time high, even though you know nothing but bearish things have been said about the Germany economy for the last two years.

There are clearly great expectations, and at least these numbers do give some hope. European manufacturing PMI, at a 26 month high, for example. Output is accelerating. Uh, job cut expectations seems to be going down.

Voice Over: Growth and activity was still weak and the index was below analyst projections. The block’s dominant services industry fell to 50.4 from last month’s, 50.6 while a near three year long contraction in manufacturing.

Ease to a two year high of 48.7. Powerhouse Germany also saw manufacturing production rise for the first time in almost two years. That helped business activity there expanded its sharpest pace in 10 months, but France saw activity contract for a seventh consecutive month. Business confidence fell to its lowest level in close to five years.

Analysts believe the improving business climate in the Eurozone overall could gain further momentum in the coming months. It plans for spending splurge in infrastructure and defense, particularly in Germany that has raised optimism for a turnaround in Europe’s economic fortunes.

Source: https://youtu.be/tEm13FWEcV4