Euro zone growth hits 10-month high in March: S&P
Economic growth in the euro zone accelerated in March to a 10-month high, the S&P Global PMI manufacturing index said in its latest report on Friday.
The indicator stood at 54.1, compared to 52.0 in February. A reading that exceeds 50 is considered to be growth in economic activity.
The index considered growth a sign of economic recovery, after the fall at the end of last year.
Russia’s war in Ukraine, which followed a two-year global pandemic that crippled several economies, has left much of the world economy struggling with inflation, stunted growth and the looming prospect of recession.
What did the report say?
Inflationary pressures were in continued moderation and job growth was accelerating, the index said.
However, the Index warned that the overall growth rate is still modest, adding that it was mainly driven by the services sector, with the manufacturing sector still relatively stagnant.
The index reported the loss of new orders in the manufacturing sectors, “meaning that current production is being supported only by backlogs of orders placed earlier”.
The index also warned of continued high levels of overall input costs and selling price inflation rates “by historical standards”. It added that an increase in charges was occurring at a pace not seen before the pandemic.
“These stubborn inflationary pressures, fueled primarily by the services sector and rising wage costs, will be a concern for policymakers and suggest that more work may be needed in terms of bringing inflation down to target,” said Chris Williamson, Chief Business Economist at S&P. Global market intelligence.
Source: DW
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