The Eurozone Economy Returns to Growth in March With Factory Activity

A preliminary survey showed a sudden return to economic activity in the euro area to grow this month, as factories increased their production to the fastest pace in more than 23 years, offsetting a continuing slowdown in the region’s dominant service sector.

But the final reading of the survey and also the April figures may be lower at a time when most of Europe is suffering from a third wave of Coronavirus and the renewal of general isolation measures, in addition to the slow distribution of vaccines in the region.

The preliminary reading of the IHS Markit Composite Purchasing Managers’ Index, which is a good indicator of the resilience of the economy, jumped above the 50 level that separates growth from contraction to 52.5 in March from 48.8 in February, the highest reading since late 2018.

The most optimistic respondents in a Reuters survey said it would rise to 51.0 while the median forecast was for a slight increase to 49.1.