Business growth in the euro zone kept strong in February, with companies showing optimism unseen in over 5 and a half years as a poll of purchasing managers revealed, even though there were signs that bigger prices and a grown currency had a negative effect.
Among the largest economies the euro zone turned out to be one of the leaders, and its companies stepped up activity more than at any time in over a decade from the beginning of 2018.
This month’s preliminary PMI suggested that the vigorous expansion commenced last month has slightly decelerated.
Composite flash PMI by IHS Markit, regarded as a beacon for economic well-being, slumped to 57.5 in February, lower than any prediction as a Reuters survey showed, which earlier had expected less of a fall to 58.5 from 58.8, the January’s ending figure.
However, February’s data was anyway much higher than all registered during the past 11 years.
Euro zone was on its way towards the record quarterly growth since July-September period of 2016, and the PMI showed the first quarter expansion of 0.9%, greater than the Reuters poll’s forecast of 0.6%, IHS Markit said.
Companies were similarly upbeat, as an index gauging possible production for a year grew to 68.3 from 68.0, the top figure since July 2012 when IHS Markit commenced its measurements.