The Eurozone’s beleaguered economy is showing signs of recovery according to a survey conducted by financial information group Markit. The data indicates that business optimism is rising amongst the 17 countries that use the Euro.
Markit’s Eurozone PMI® Composite Output Index showed an increase in economic growth from 47.2 in December to 48.6 in January, a ten-month high. According to the index, business activity in manufacturing production and the service sector has decreased at the most moderate rates since March 2012, with similar modest reduced rates observed in each sector.
“Rates of reduction of new business eased in France, Italy and Spain, accompanied by a return to growth in Germany, presenting a more consistent picture of demand moving in the right direction across the region,” said Markit’s chief economist Chris Williamson.
Overall, the balance of the Eurozone’s growth is weighted heavily towards Germany. “The Eurozone is showing clear signs of healing, with the downturn easing sharply in January and the region moving closer to stabilisation in the first quarter,” added Williamson.
How might the recovery of the eurozone gain growth further on?