Eurozone business activity at a six-year high

There has been more positive news on the eurozone’s economic recovery as we learned that the region’s businesses are racing ahead.

Manufacturing and services companies said they increased activity at the fastest rate in six years in April.

Surveys of thousands of firms suggest a broad based and sustainable recovery. Survey compiler IHS Markit said the data was consistent with a GDP growth rate of 0.7 percent for the region.

The better than expected increase in activity came despite companies raising prices again, albeit at a weaker rate than in March.

With both growth and inflation stronger, pressure is now mounting on the European Central Bank to start dialling back its stimulus programmes.

The big four

The surveys from the bloc’s four biggest economies paint an encouraging picture.

Europe’s largest economy is enjoying solid growth as although activity in Germany’s services sector fell slightly it remained strong in April. French services activity only eased off March’s near six-year high.

In Italy, service sector growth was at its fastest rate for almost a decade, while Spain’s hit a 20-month high.