Eurozone growth 'surges' to six-year high: survey

Fears over a populist political tide sweeping across Europe have done little to set back the Continent's economic performance after figures today showed growth at a six-year high. "Worries about consumer spending and business confidence haven't emerged yet and the ECB could be behind the curve," he said. But powerhouses France and Germany grew strongly despite rising price pressure. The latest snapshot the eurozone's private-sector manufacturers and services firms from IHS Markit — revealing the fastest expansion since April 2011 — comes against the backdrop of deep political uncertainty following the Brexit referendum and Donald Trump's White House win. The European Central Bank is pumping €80 billion (£69.2 billion) into the economy every month although the strength of the survey is usually at a level where the ECB would be hiking rates, according to IHS Markit's chief economist Chris Williamson.


as informed in

Eurozone growth 'surges' to six-year high: survey

Eurozone growth could amount to 0.6 percent in the first quarter if the trend continues, he said. Data monitoring company IHS Markit also said job creation in the 19-country eurozone recorded its best level for almost a decade. The positive data came on the back of France and Germany, which experienced robust growth, mainly in the service sector. "Perhaps the best news came from France, where growth has risen above that seen in Germany, led by strengthening domestic demand," Williamson said. He said the European Central Bank would be encouraged by both signs of stronger growth and inflationary pressure.




Chris Williamson, chief business economist at IHS Markit, said: "The eurozone economy's throttle opened further in March, with business activity and hiring surging higher." Economists said the PMI data could encourage the European Central Bank (ECB) to move towards raising interest rates and further easing its monthly bond-buying programme. The eurozone youth unemployment rate is one in five, and it's a lot higher than that in several countries. French growthFuelling the growth were strong performances from France and Germany's services sectors, the survey found. "Perhaps the best news came from France, where growth has risen above that seen in Germany, led by strengthening domestic demand," Mr Williamson said.


read more visit us Business

collected by :John Miller