Eurozone factory growth hit a six-year high in March, showing a continuation of recent economic growth in the region.
The factory Purchasing Managers’ Index rose to a 71-month high of 56.2 in March, according to final data from IHS Markit on Monday. The figure is in line with flash estimate given previously, and on increase on February’s figure of 55.4.
The average PMI reading over the first quarter as a whole was 55.6, the highest since the opening quarter of 2011. Germany in particular had a strong month, hitting a 71-month high of 58.3. Italy’s figure hit a 72-month high at 55.7 and France a 2-month high at 53.3.
“Eurozone manufacturing is clearly enjoying a sweet spell as we move into spring, but it is also suffering growing pains in the form of supply delays and rising costs,” Chris Williamson, chief business economist at IHS Markit, said.
The figures were followed by positive jobs statistics, with unemployment across the region dropping to its lowest level in almost eight years.
The eurozone jobless rate fell to 9.5 percent in February, according to Eurostat, down from 9.6 percent in January. This is the lowest rate recorded in the euro area since May 2009.
However, Mihir Kapadia, CEO of Sun Global Investments, says the French presidential elections will make or break Europe’s recovery:
“A Le Pen victory would be huge challenge for the ECB as it would be required to give massive support to the Euro and to French bonds and banks as they would come under severe market pressure,” she said.