Investing.com - Economic activity in the euro zone unexpectedly rose in March, hitting nearly a six-year high and bolstering optimism over the region’s economy, preliminary data showed on Wednesday.
In a report, market research group Markit said that its flash Euro Zone Composite Output Index, which measures the combined output of both the manufacturing and service sectors increased to 56.7 in March, from the prior month’s reading of 56.0 and above forecasts a drop to 55.8. That was its highest reading since April 2011.
The flash services purchasing managers’ index also unexpectedly rose to 56.5 this month, from February’s final reading of 55.5, beating expectations for a reading of 55.3.
The preliminary euro zone manufacturing purchasing managers’ index rose to a seasonally adjusted 56.2 this month from a final reading of 55.4 in February. Analysts had expected the index to dip to 55.3 in March.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
“The eurozone economy’s throttle opened further in March, with business activity and hiring surging higher,” IHS Markit chief economist Chris Williamson said.
“The March flash PMI rounds off the best quarter for six years and signals GDP growth of 0.6% in the first quarter,” he added.
After the report, EUR/USD traded at 1.0795 compared to 1.0802 ahead of the release, while EUR/GBP was at 0.8645 from 0.8643 earlier.
Meanwhile, European stock markets were trading lower. The Euro Stoxx 50 fell 0.28%, Germany's DAX gave up 0.06%, France’s CAC 40 traded down 0.37%, while London’s FTSE 100 slipped 0.08%.