Eurozone Private Sector Recovers In March

(RTTNews) - The euro area private sector expanded in March, halting a sequence of contraction that started last June, final survey results of the purchasing managers' survey by S&P Global showed on Thursday.

The final HCOB composite output index rose to a ten-month high of 50.3 in March from 49.2 in February. At 49.9, the flash reading had signaled another month of decline in activity.

The final score exceeded the neutral 50.0 mark for the first time since May last year.

Nonetheless, the upturn was only marginal as the contraction in the manufacturing sector almost offset the moderate recovery in the services activity.

The services Purchasing Managers' Index, or PMI, hit 51.5, up from 50.2 in February and the initial score of 51.1. The services sector expanded for the second straight month and marked the strongest since last June.

Among member countries, Spain and Italy provided the greatest boosts, with their growth rates accelerating to the strongest for nearly a year.

These upturns more than offset sustained contractions in output across the two largest economies of the bloc, Germany and France.

The downturn in Germany's private sector slowed in March with the composite output index climbing to a four-month high of 47.7 from 46.3 in February. The score remained above the flash 47.4.

The services PMI registered 50.1 in March, up from 48.3 in the prior month. The initial reading was 49.8.

France's private sector activity continued to contract but the downturn was the least marked in the current ten-month sequence of decline.

The composite output index came in at 48.3, up from 48.1 in February and flash score of 47.7. Likewise, the services PMI rose to 48.3 from 48.4 in the previous month. The preliminary score was 47.8.

Spain's uptick in business activity was a result of ongoing service sector strength, as well as renewed growth at manufacturers. The composite output index advanced to 55.3 from 53.9 in February.

The services PMI posted 56.1 in March, up from 54.7 in February. The score was forecast to climb to 55.5.

Italy's private sector expanded further in March with output growth broad-based for the first time in a year. The composite output index climbed to 53.5 from 51.1 in February. The services PMI increased to 54.6 from 52.2 a month ago.