LONDON (Reuters) – Stronger-than-expected momentum in the services sector supported private sector activity in the euro zone in February, according to “flash” results from S&P Global’s monthly survey of purchasing managers.
S&P Global’s flash composite PMI, considered a good barometer of economic activity, climbed to 52.3 in February from 50.3 in January.
This is well beyond the threshold of 50 which separates a contraction from growth in activity and the forecast of economists polled by Reuters at 50.6.
“Activity across the euro zone grew much faster than expected in February, with growth reaching its highest level in nine months on the back of renewed service sector activity,” said economist Chris Williamson. at S&P Global.
“February’s PMI is broadly consistent with sequential GDP growth just under 0.3%,” he added.
In the services sector, the PMI index reached 53.0 in February against 50.8 in January and while the median forecast of economists was 51.0.
With recession fears receding, economic optimism improved further with the New Business Index at a nine-month high of 61.5 from 61.2 in January.
However, activity in the manufacturing sector contracted more than expected, with a PMI index at 48.5 against 48.8 the previous month and a forecast of 49.3.
(Report Jonathan Cable, Blandine Hénault for the , edited by Kate Entringer)
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