Economic activity in the eurozone has grown fastest since June

The composite Purchasing Managers’ Index (PMI) for the eurozone rose in February to 52.0 from 50.3 points in January, marking its best mark in eight months and the fastest expansion since June 2022, according to reports. revealed S&P Global.

For this figure to exceed 50 points implies an expansion of economic activity. Mainly, this increase was driven by the stability of manufacturing production and by “a stronger improvement in activity in the service sector.” In particular, the level of new orders received increased for the first time since May 2022, as increased customer activity supported strengthening underlying demand.

The downward trend in backorders also continued as Eurozone companies continued their recruitment activities. Business confidence consequently rose to its 12-month-high.

In addition, a sharp reduction in cost pressures in the manufacturing sector masked the strengthening of inflation in the prices paid by service companies. The overall rate of increase in operating costs was the slowest in almost two years.

Regarding the PMI of Commercial Activity of the Services Sector, it is at its highest for eight months, with 52.7, that is, a rise of 1.9 points compared to the first month of 2023. This is explained by the increase “moderate” new order volumes in February, although it was at the fastest rate since May 2022. The rebound in demand added pressure to operating capacities, as evidenced by the increase in backlogs.

Source: dpa

(Reference image source: file)

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