- Markit
Manufacturing and service sectors' activity in the single currency area has improved confidently in March, underlying positive expectations from the quantitative easing programme of the ECB that is likely to lift up Euro zone's weakened economy. Therefore, markets suggest that a recovery in the 19-nation currency bloc is becoming more sustainable. The composite PMI Index for both manufacturing and service industries, released by Markit Economics, climbed to 54.1 points this month, up from 53.3 in February and more than forecasted at 53.6 points. By country, the most considerable contribution was made by Germany, the region's biggest economy, where the composite indicator surged to 55.3 points, giving the activity a 23th straight month of expansion. Moreover, experts from Markit assume the long-awaited recovery in the Euro zone will again be driven by its largest member state. They predict the bloc's GDP will most likely add 0.3% in Q1 2015, with a 0.4% growth in Germany alone.
In the meantime, French numbers came out worse than estimated for production sector, and in line with forecasts for services industry. Although they both increased to 48.2 and 52.8 points, respectively, manufacturing in the Fifth Republic still remains in the contraction phase. Additionally, economists point on a rising growth gap between two major economies of the Euro zone.
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