Eurozone economic growth hit a fresh six-year high in April, according to PMI survey data.
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Job creation also rose to the highest for almost a decade as firms boosted operating capacity in line with buoyant demand and widespread optimism about future prospects.
Price pressures meanwhile remained among the strongest seen over the past six years.
The Markit Eurozone PMI rose to 56.7 in April, according to the preliminary ‘flash’ estimate (based on approximately 85% of final replies).
Up from 56.4 in March, the latest reading was the highest since April 2011.
Growth rates of incoming new business and backlogs of uncompleted work both remained close to March’s peak to register the second-strongest monthly improvements in six years.
The strength of demand helped to sustain buoyant levels of business optimism about the year ahead, with expectations of future activity levels moderating only slightly from March’s peak (which had been the highest since comparable data were first available in 2012).
The positive business mood and strong order book situation in turn prompted firms to take on extra staff at the fastest rate since July 2007.
Growth accelerated in both manufacturing and services to the highest since April 2011.
The former once again recorded the faster pace of expansion.
Job creation likewise remained strong in both sectors, with manufacturing employment rising at a rate not seen since 2000.
However, while new order growth in manufacturing hit the strongest since March 2011, buoyed by the largest export gain since April 2011, growth of service sector new business inflows waned slightly.
Similarly, while optimism about the outlook rose to a joint-record high in the goods-producing sector, confidence dipped to a three-month low in services, albeit remaining buoyant by historical standards.
Price pressures meanwhile remained elevated.
Input cost inflation revived to match February’s near six-year peak, while average prices charged for goods and services rose at a rate only marginally lower than March’s near six-year high.
Cost increases were again widely blamed on rising global commodity prices, exacerbated by import costs being lifted higher by the weak euro.
Supply chains also continued to tighten, signalling a growing trend towards a sellers’ market for many items.
Suppliers’ delivery times lengthened to the greatest extent for nearly six years.
Evidence of rising wage pressures also continued to be seen.
By country, faster business activity growth in France – the strongest seen since May 2011 – was offset by a moderation in Germany, albeit with the pace of German expansion still running at one of the fastest seen over the past six years.
Elsewhere, growth of output accelerated to the strongest since July 2007. ■