Tradebuddy.online – Economic activity in the euro zone unexpectedly rose in April, hitting a six-year high and bolstering optimism over the region’s economy, preliminary data showed on Friday.
In a report, market research group IHS Markit said that its , which measures the combined output of both the manufacturing and service sectors increased to 56.7 in April, from the prior month’s reading of 56.4 and above forecasts a drop to 56.3.
The also unexpectedly rose to 56.2 this month.
Analysts had expected the index to remain unchanged at March’s final reading of 56.0.
The rose to a seasonally adjusted 56.8 this month from a final reading of 56.2 in March. Analysts had expected the index to dip to 56.0 in April.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
The report indicated that not only all three readings of activity hit a 72-month high, but that 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 research group added.
IHS Markit chief economist Chris Williamson noted that the data showed a strong start to the second quarter and was consistent with an increase of 0.7% in economic growth.
After the report, traded at 1.0723 compared to 1.0719 ahead of the release, while was at 0.8360 from 0.8359 earlier.
Meanwhile, European stock markets were trading mixed. The fell 0.28%, Germany’s rose 0.10%, France’s traded down 0.51%, while London’s slipped 0.06%.