Resumes speeds. Activity in the euro zone rises at the fastest pace … – Observer

Resumes speeds. Activity in the euro zone rises at the fastest pace … – Observer

The economic activity have accelerated in February at the fastest pace in seven months, judging by one of the most important leading indicators and more closely followed by investors: the index of purchasing managers, or PMI ( purchase managers index ), the Anglo-Saxon acronym. The indicator suggests that the decline in oil prices and the depreciation of the euro caused by the unprecedented monetary stimulus launched by the European Central Bank (ECB) are to be an important incentive for the euro area economy, despite the uncertainty generated by the impasse on Greece.

A survey of London consulting firm Markit, which is made with entrepreneurs of the eight major eurozone economies, indicates that economic activity accelerated in February in both the industrial sector and in services. The composite PMI index (which includes, then, goods and services) rose to 53.5 points in February, compared to 52.6 points in January. A value above 50 indicates an expansion of activity, while a reading below that level indicates potential for a contraction in activity.

The value indicates that the euro area economy is expected to grow in the first quarter to same rate that grew in the last quarter 2014 to 0.3% – but bodes well for the recovery of the euro area, which for several consecutive quarters proved to be more fragile and limited than they would like European political leaders. The index went above estimates of economists surveyed by Bloomberg, which pointed to a reading of around 53 points. The activity in services, in particular, was much higher than expected.

“Immune to the crisis that is taking place in Greece, economic growth is gaining momentum and seems to walk to accelerate further in the coming months “writes Chris Williamson, chief economist at Markit, the consultant working out the survey. “With the bazooka of the ECB to start in March, the optimism of entrepreneurs accelerated to the highest level in the last three and a half years.”

Still, the specialist, the recovery is to be “uneven”, “very dependent on the growth in services, which are benefiting from the drop in prices and increased consumption.” Chris Williamson says it continues to “weakness in industrial activity, which is a major concern.”