The IHS Markit’s survey revealed on Monday that the pace of expansion of
the Eurozone’s business activity quickened in early February as a relaxation of
the coronavirus restrictions underpinned growth, especially in the region’s service
sector. In addition, manufacturers’ production also witnessed improvement amid
rising demand and fewer supply bottlenecks.
According to the report, the flash Eurozone services PMI activity index jumped
to 55.8 this month from 51.1 in January, as relaxed restrictions supported a particularly
strong increase in consumer-facing activity and travel and tourism. That was the
highest reading since November 2021. Economists had forecast the indicator to edge
up to 52.0 in February.
Meanwhile, the flash Eurozone manufacturing PMI slipped to 58.4 in February
from 58.7 in the previous month. Economists had forecast the indicator to stay
unrevised at 58.7 in February. A slight deceleration in the expansion of the Eurozone’s
manufacturing sector was mainly due to supply constraints, which, although
easing, remain widespread and continue to cause growing backlogs of work.
The flash IHS Markit Eurozone composite PMI moved up to 55.8 in February
from 52.3 in the previous month. That was the highest reading since September
2021.
Economists had forecast the indicator to increase to 52.7 in February.