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Eurozone business growth at 15-year high

23 Jun 2021 11:36 AM

A survey showed that business growth in the euro zone accelerated at its fastest pace in 15 years this month, as further easing of lockdown measures and unleashing pent-up demand sent the bloc's dominant service industry booming.

When the coronavirus was spreading rapidly, governments imposed strict restrictions, encouraged citizens to stay home and forced much of the service industry to close. But after a slow start, the vaccination campaign in the region began to accelerate and the burden on health services decreased, allowing some restrictions on service companies - which were already adjusting to the new operating conditions - to be lifted.

This led to a jump in the composite PMI, which is seen as a good guide to economic health, to 59.2 from 57.1, its highest reading since June 2006.

The services PMI rebounded to 58.0 from 55.2, the highest level since January 2018 and slightly above expectations of 57.8. Suggesting that the momentum will continue, the New Business Index rose to a 14-year high at 57.7 from 56.6.

Meanwhile, the expansion in manufacturing activity kept pace with the record sharp pace of May, as preliminary estimates of the June PMI were in line with the final reading for May of 63.1.

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