European economy exceeds expectations

Business activity in the euro zone expanded again in April, preliminary data showed on April 23, providing some positive momentum for the second quarter, Report informs referring to CNBC.

European countries have stepped up their vaccination rates, but some nations remain in lockdown amid a third wave of Covid-19 infections.

IHS Markit’s flash composite PMI for the euro zone, which looks at activity across both manufacturing and services, hit 53.7 in April versus 53.2 in March. A reading above 50 represents an expansion in economic activity.

Chris Williamson, chief business economist at IHS Markit told CNBC that “containment measures to fight coronavirus were actually tightened and normally we would expect the pace of economic activity to weaken but it has done the opposite.”

He added that companies were optimistic about the future and preparing for better times ahead.

In the near future, an increase in expenses for services will be recorded as compared to the last few months, when the main drivers of economic growth were industry and manufacturing.