(MENAFN– ecpulse) Euro area composite of manufacturing and services widened expansion in April, adding to speculations recovery in the euro area is on the right track.
The PMI composite index rose from 53.1 in March to 54.0 in April, where the services sector remained unrevised at 53.1.
Data released last week signaled that PMI manufacturing accelerated in April as the final reading recorded three-month high of 53.4, up from March`s 53.0 reading and the flash estimate of 53.3.
"April saw a broadening of the recovery, with PMI readings for all of the nations for which data are collected above the 50.0 mark that divides expansion from contraction for the first time since November 2007. Levels of output and new business also increased across all of the nations," Markit said last week.
Despite the risk stemming from the low inflation, still many analysts’ predict the euro are to recover gradually.
The central bank is open to using asset purchases to battle low inflation, ECB Chief Mario Draghi. He also stressed that higher euro exchange rate could negatively affect the euro zone`s recovery.
The euro area’s inflation rate rose from the lowest level in more than four years in April to 0.7 percent.
However, the European Commission said on Monday it trimmed its growth forecasts for the euro area for next year to 1.7 percent from 1.8 percent while held estimates for this year at 1.2 percent expansion.
The EU expects the low inflation rate to remain the key threat to eurozone growth prospect for at least the next two years.
Later in the day, the OECD will publish global economic forecasts, including its latest estimates for the 18-nation region.
As of 08:05, the euro traded higher versus the green currency around 1.3915 after touching a peak of 1.3930.
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