Business activity in the eurozone accelerated in April as the dominant service sector benefited from further easing of coronavirus restrictions, offsetting a delay in manufacturing output.
S&P Global PMI, which reflects the performance of manufacturing and service companies, rose to 55.8 from 54.9 in March.
The Services PMI jumped to 57.7 from 55.6 in March, the highest level since August. In contrast, manufacturing PMI fell to 55.5, a 15-month low.
“The eurozone economy has shown unexpected resilience in the face of the war between Ukraine and Russia thanks to a fresh surge in services activity as coronavirus restrictions eased further in April,” said Chris Williamson, chief economist at S&P Global.
With restrictions on the spread of COVID-19 eased and life returning to some normalcy, optimism has improved and the service sector expectations index has risen to 62.3 from 60.8.
Companies, however, continue to face high costs, some of which are passed on to consumers, with the composite manufacturing index rising to 68.5 from 65.7, the highest level since data collection began in 2002. S&P Global.
“The combination of a stronger growth profile in the second quarter and robust inflation pickup in the polls will reinforce expectations that the ECB may start raising interest rates from its July meeting,” Williamson said.