Eurozone economy returns to growth thanks to strong services output

The eurozone economy returned to growth for the first time since May 2023 thanks to stronger-than-expected output from the services sector, according to the closely followed purchasing managers’ index (PMI).

The eurozone services PMI rose to 51.5 for March, up from 50.2 in February, and the highest in nine months, according to S&P Global, which runs the survey. That was higher than the 51.1 expected by economists polled by Reuters.

But it was not all good news by any means. The two largest euro economies – Germany and France – are still in contractionary territory. S&P Global said:

Spain and Italy provided the greatest boosts, with their growth rates accelerating to the strongest for nearly a year. Combined with a solid expansion in the Irish economy, these upturns more than offset sustained (but weaker) contractions in output across the two largest economies of the eurozone, Germany and France.