Business activity in the 16 countries sharing the euro picked up slightly in March although from depressed levels, according to a new survey released yesterday.

The eurozone's purchasing managers' index, compiled by data and research group Markit, rose to 37.6 points from 36.2 points in February, according to first estimates.

The figure marked the 10th month in a row that the index has come in below the key 50-point threshold that indicates contracting activity in the private sector as the European economies endure a deep recession.

The separate PMI index for the eurozone's vast service sector also gained some ground, rising to 40.1 points from 39.2 in February.

Meanwhile, the struggling manufacturing sector saw an improvement with its index rising to 33.2 points from 30.8.

Economist Howard Archer at consultants IHS Global Insight said that it was "hard to draw much comfort" from the improved data given that they remain at low levels indicating a contraction.

"The limited improvement in the March manufacturing and service sector purchasing managers' surveys does not significantly dilute belief that eurozone economies are deep in the mire and headed for very sharp contraction this year," he said.