The headline IHS Markit Eurozone Composite PMI* surged 3.5 points in February (its largest monthly gain since March of last year), up from 52.3 in January to 55.8, to signal a sharp acceleration of economic growth, according to the preliminary ‘flash’ estimate*. The latest reading indicates the fastest rate of output growth since last September.
Eurozone business activity growth accelerated sharply in February as COVID-19 containment measures were relaxed. Future expectations, new orders and jobs growth also improved. Growth picked up especially in the service sector, though manufacturers also reported improved production gains as a result of rising demand and fewer supply bottlenecks. However, while an easing of supply delays helped to reduce raw material input cost inflation, persistent cost pressures caused by rising wages and energy bills led to the sharpest rise in average prices charged for goods and services in the PMI survey’s history.
By country, business activity rebounded most sharply in France, where growth reached the highest since last June, though growth in Germany also picked up to the fastest since last August.
(*): The Composite Output PMI is a weighted average of the Manufacturing Output Index and the Services Business Activity Index.
Post by: Republic of Turkiye Ministry of Trade