Eurozone business activity rises for the first time in half a year as manufacturing sector shows signs of recovery

Business activity

Business activity in the euro area has grown in March for the first time in six months, marking the largest increase since July. However, the modest recovery could be easily derailed by the third wave of Covid-19 infections.

HS Markit’s final Composite Purchasing Managers’ Index (PMI), which is considered a good gauge of economic health and combines both manufacturing and services, climbed to 52.5 in March compared to 48.1 recorded last month. A reading above 50 separates growth from contraction.

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