Growth and expansion in the business endeavours in the Eurozone fast track at its fastest paced in nearly three years this month based on the preliminary purchasing managers’ index which was published earlier last week despite the caution made by analysts regarding the dropping of prices which ignited fears of deflation in the market.
The purchasing managers’ index composite which included both the services and manufacturing sectors rose to 54.0, from its prior level of 53.1, which defeated consensus predictions and estimates for no apparent change and clocked in at by far its highest level in more than three years.
The manufacturing purchasing managers’ index was edging up slightly to 53.3 as compared from its previous level of 53 which was within the stable expectations of analysts. Moreover, the services purchasing managers’ index leaped to a 53.1 level from a previous 52.2 which beat the consensus predictions for a smaller increase of 52.4 accordingly.
Germany persisted in their lead to upturn with France in order to help manage the stability of the former’s economy and despite the positive news for the region with regards to the return of job creation, it was regarded as very positive and encouraging which is implicative that companies believe that recuperation and rehabilitation appears to be increasingly sustainable.
The Eurozone has started its second quarter on a sturdy position and predicted that the gross domestic product expansion would sustainably increase by 0.5 % this coming quarter as compared to a 0.4 % rise in the first quarter of this year.
Despite the cautionary warnings, prices will persist to be a primary concern with the selling prices falling at the quickest pace since last year albeit the upturn in activities. There will be new growing fears that the deflationary pressures are escalating and that then European Central Bank (ECB) requires a response with more than just assurance and promises regarding the most recent appreciation of the exchange rate. More so especially that the ECB’s next monetary policy decision making is fast approaching in the first week of this coming May.