Private sector output in the euro area recorded its strongest growth since August 2007
| Date: March 24, 2010 | Source: Reuters |
| Category: Economy | |
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Loading ... Economic recovery in the euro area has increased in March due to the improved activity and private sector output has recorded its strongest growth since August 2007, according to PMI that makes Markit Economics.
He adds that the pace of job losses in the euro area "continued fading" to register the smallest decline in private sector employment for 19 months.
The indicator suggests that expectations for the next 12 months suggest that there will be a new attenuation of the reduction of the workforce, while employment in manufacturing has been "slightly stronger" than in the service.
However, employment in the service sector has declined at the slowest pace since September 2008.
According to the survey from Markit Economics in March, the recovery of activity and production has reached in the two sectors, the fastest pace in the case of manufacturing since June 2006 and in service since November 2007.
Composite Index Total Activity in the Euro Zone, prepared with information provided by the companies on their level of real activity in mid-month, compared with the previous month in March stood at 55.5 points compared to registered 53.7 in February, representing the eighth consecutive increase of private sector activity.
The recovery of the euro area economy has been due to the increase in total new orders and new export orders. The latter have been favored in part by the weakening of the euro.
In manufacturing, the ratio of new orders and the "stock" of finished products has grown to its highest since October 1999, which, according to the report, suggests that in the coming months, producers must remain "strengthening" the productivity to meet growing demand.
Following this demand, the backlog has increased in March for the fourth consecutive month, especially in manufacturing.
For the same reason, the delivery times of suppliers in the industry have risen and supply shortages have caused prices paid recorded their biggest gain since August 2008.
The costs in the service sector also grew but at a "much lower" than the long-term average of the series, restrained by weak wage pressures.
