Investing.com - Manufacturing activity in the euro zone expanded at the fastest pace in ten months in March, easing concerns over the region’s growth outlook, preliminary data showed on Tuesday.
In a report, market research group Markit said that its preliminary manufacturing purchasing managers’ index rose to a seasonally adjusted 51.9 this month, up from a final reading of 51.0 in February. Analysts had expected the index to ease up to 51.5 in March.
Meanwhile, the preliminary services purchasing managers’ improved to a 46-month high of 54.3 this month from 53.7 in February and above expectations for a reading of 53.9.
The seasonally adjusted Markit Flash Euro Zone Composite Output Index, which measures the combined output of both the manufacturing and service sectors increased from 53.3 in February to 54.1 in March, also a 46-month high.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
Commenting on the report, Chris Williamson, Chief Economist at Markit said that, “The euro zone’s economic recovery gained further momentum in March, with the PMI hitting its highest for almost four years. The improvement provides welcome news to a region awaiting signs that the ECB’s quantitative easing is stimulating the real economy."
He added, "The region’s GDP looks to have expanded by 0.3% in the first quarter, buoyed by a 0.4% expansion in Germany and signs of a long-awaited recovery in France."
EUR/USD was trading at 1.0985 from around 1.0986 ahead of the release of the data, while EUR/GBP was at 0.7347 from 0.7346 earlier.
Meanwhile, European stock markets remained modestly higher. The EURO STOXX 50 rose 0.15%, Germany's DAX tacked on 0.3%, France’s CAC 40 inched up 0.2%, while London’s FTSE 100 increased 0.15%.