EU’s economic recovery gained steam during the first quarter of 2017
The eurozone’s economy may have picked up during the first three months of 2017, according to surveys of purchasing managers released Friday, raising expectations that the European Central Bank will consider a moderation of its stimulus measures over the coming year.
Data firm IHS Markit said its composite Purchasing Managers Index for the eurozone’s manufacturers and service providers, which is based on a survey of 5,000 companies, rose to 56.7 in March from 56.0 in February, reaching its highest level since April 2011. The rise was unexpected, with economists surveyed by The Wall Street Journal last week having forecast a drop in the measure. A reading above 50.0 signals an increase in activity, while a reading below signals a decline.
The average reading for the first three months of the year was the highest since the same period of 2011, pointing to an acceleration in quarter-to-quarter growth from the 0.4% rate recorded at the end of last year. The surveys suggest that a faster rate of expansion is likely to be sustained over coming months, since new orders also surged and businesses hired additional workers at the fastest pace in close to a decade.
