Eurolands PMI results solid

Tuesday, 19 April 2011 02:10

Growth in the Euroland services sector slowed slightly this month but factories ramped up production as prices increased at the fastest monthly rate in three years. The April PMI highlighted that business activity in Germany and France continued to outpace the rest of the EU.

The service sector output price index rose to its highest since 2008, up to 53.2 even as the pace of input price rises for manufacturers moderated. That sub index fell to 79.6 from 82.2 but this was still the third highest reading, exceeded only by those in the prior two months.

Euroland data showed inflation rose to 2.7 % in March, Flash Markit Eurozone Services Purchasing Managers Index fell to 56.9 in April from the previous month's near four year high of 57.2 in line with consensus.

The euro zone composite PMI, a broader measure of the services and manufacturing data, was up to 57.8 from March's 57.6, beating forecasts for a fall to 57.1.

Hiring was stronger this month to its strongest pace since November 2007, with the composite employment index rising to 53.6 from 53.1. Unemployment in the euro zone dipped to 9.9 % in February after holding steady at 10 % in January.