(MENAFN– ecpulse) European manufacturing and services remained near its fastest level since 2011 in March, providing hopes recovery will continue in a gradual manner.
PMI manufacturing narrowed expansion to 53.2 in March from a prior of 53.3, coming in line with analysts’ forecast. The services gauge retreated 52.4 from 52.6, lower than expectations of lingering at 52.6.
A composite of manufacturing and services, accordingly, retreated to 53.2 from 53.3, matching projections.
In Germany, the manufacturing sector slipped to a four-month low of 53.8 from 54.8 while services dropped to 54.0 from a previous of 55.9.
French manufacturing, however, shifted to expansion after recording 51.9 from the prior contraction of 49.7 and services rose to 51.4 from 47.2.
Growth pace in the 18-nationr region picked up in the fourth quarter to mark 0.3 percent expansion from the prior 0.1 percent growth.
Later in the week, the euro area will face a test of confidence amid the recent deflationary pressures encountering the region.
Economic confidence probably soared to 101.5 in March from 101.2 a month earlier, while another important figure may signal a drop in German business confidence from the strongest level in 2 1/2 years of 111.3 to 110.8.
While ECB President Mario Draghi refrained from introducing new monetary tools to stave off the low inflation this month, he said the ECB has been preparing for new monetary tools to combat deflation.
As long as inflation remains low the higher the possibility the euro area would reel from deflationary pressures, Draghi has revealed.
As of 09:10 GMT, the euro traded lower versus U.S. dollar around 1.3787 after hitting a high of 1.3825.
It is worthwhile to mention that one of the main challenges facing recovery in the region is the appreciation of the euro.
The euro’s exchange rate is "becoming increasingly relevant in our assessment of price stability," Draghi said.
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