Eurozone composite PMI beats expectations, close to 6-year high in March

Eurozone economic growth gathered further momentum in March, bolstering optimism over the region in the face of Brexit. Businesses across the euro zone ramped up activity at the fastest pace in almost six years, a survey by IHS Markit showed. Eurozone Markit's flash composite PMI rose to 56.7, from 56.0 in February, defying median expectations in a Reuters poll for a fall to 55.8.

Both manufacturing and service sector firms responded to surging order books by rising hiring. Employment showed the largest monthly improvement since July 2007. Service sector job creation was the best seen since October 2007, and factory payrolls were added to at a pace not seen since April 2011.

Price pressures also continued to pick up.  A sub-index measuring prices charged rose to a near six-year high of 53.3.  Average prices charged for goods and services rose at the steepest rate since June 2011. Some evidence of rising wage growth and supply chain price pressures was also seen. 

"The increasingly broad-based nature of the upturn also bodes well for strong growth to be sustained in coming months. While elections remain a worry regarding the outlook, for now the business mood in France and across much of Europe is very positive.” said Chris Williamson, Chief Business Economist at IHS Markit.