According to a recent survey by IHS Markit, a British consultancy, economic activity in the eurozone has skyrocketed. The Purchasing Managers’ Index (PMI) rose to 52.5 points. This is the highest level since the end of 2018.
The aggregate index of purchasing managers in the euro area was almost four points higher than in February, when it held just below 49 points. At the same time, just 50 points form the line between expansion and a decline in economic activity. At the same time, analysts’ most optimistic estimates were 51 points. The result is thus significantly above market expectations, despite the onset of the third wave of the coronavirus epidemic in some European countries.
The biggest positive surprise ever came in Germany, where the purchasing managers’ index in the manufacturing industry reached 66.6 points, the highest in the history of index tracking since April 1996. In February, the PMI reached just under 61 points. In Germany, the services sector also came to life, with the PMI rising to 50.8 in March from 45.7 points in February.
Germany’s recovery in economic activity is great news for other European countries. Germany is Europe‘s strongest economy, and the health of other economies on the old continent depends substantially on its health.