The Eurozone economy regains some momentum at the end of the first quarter. The euro zone manufacturing PMI rose to 51,4 points in March (from 51,2 in February), the highest level in two months. The Eurozone Flash Markit PMI composite index for March, which measures changes in the activity of the countries of the European Union, rose to 53,7 points, from 53,0 in February. The recovery marks a reversal of the declines recorded in the previous two months.
According to Chris Williamson, chief economist of Markit, “the data for March show how the eurozone is giving new signs of life. The PMI put an end to the worrying downward trend observed during the first two months of the year, thus putting the region on course for a first-quarter GDP expansion of 0,3 percent”.
Furthermore, according to Williamson, "hopefully, the growth observed in March should encourage the ECB to issue new stimuli in the short term to further support growth during the second quarter and into the summer".
As for Europe's largest economy, the manufacturing sector in Germany continued to slow slightly at the end of the fourth quarter, but the decline was more than offset by strong growth in the services sector.
This is the picture that emerges from the flash estimate by Markit Economics, which indicates the drop in the manufacturing PMI index in March to 50,4 from 50,5 in February, to a 16-month low. Instead, the Services index rose to 55,5 from 55,3 in February and the composite index remained unchanged at 54,1.
