The composite purchasing managers’ index (PMI) reading of private sector activity in the eurozone, compiled by IHS Markit, surged to 56.7 in March. This is the fastest pace in just under six years and higher than the February reading of 56.0. The reading for the services sector also surprised, rising a full point to 56.5, a 71-month high. The manufacturing sector reading, however, slipped to a two-month low of 57.2.

Collectively, the data suggest a first-quarter GDP growth rate of around 0.6 per cent, IHS Markit said. The survey also showed the best employment growth for almost a decade as both manufacturing and service sector firms responded to surging order books.

Meanwhile, in Germany, according to the Institute for Economic Research (Ifo), confidence among businesses in March exceeded expectations, rising to its highest level since July 2011. Ifo’s overall business climate index rose to 112.3 from last month’s 111.6.

The rise in the headline figure was driven by improved sentiment in the manufacturing, construction and retailing sectors, while the business climate in wholesaling deteriorated. Analysts had expected the index to drop slightly. The strong results support the scenario presented by last week’s PMI surveys, which suggested that the eurozone’s largest economy was at its strongest for the past six years.

Ifo chief Clemens Fuest said in a statement that the upward trend in assessment of the current business situation continued unabated and the business outlook also improved. Finally in the US, consumer confidence unexpectedly improved in March, according to a report by the Conference Board. It said that its consumer confidence index leaped to 125.6 in March from a revised 116.1 in February.

The increase surprised economists, who had predicted the index to decline to 113.8 from the 114.8 originally reported for the previous month. With the unexpected increase, the consumer confidence index climbed to its highest level since reaching 128.6 in December of 2000.

The survey also found that those saying that business conditions are “good” rose to 32.2 per cent from 28.2 per cent, while those opining that business conditions are “bad” fell to 12.9 per cent from 13.4 per cent.

This report was compiled by Bank of Valletta for general information purposes only.

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