MADRID, 24 Mar. (EUROPA PRESS) –
Business activity growth in Germany and France, the two largest economies in the European Union (EU), accelerated in March to 10-month highs as inflation, although still at high levels, begins to show signs of relief, according to preliminary data from the Purchasing Managers Composite Index (PMI), compiled by S
In the case of Germany, the composite PMI stood at 52.6 points in March, compared to 50.7 the previous month, its highest level in ten months, after the PMI for the services sector rose to 53 .9 integers from 50.9 in February, despite the fact that the contraction in the manufacturing sector worsened, with a reading of 44.4 points, compared to 46.3 the previous month, its worst result in 34 months.
“The German economy took another small step in the right direction in March,” said Phil Smith, economist at S
However, the expert highlighted the increasing decrease in the costs of manufacturing inputs, since the prices of materials and energy fell from the highs of the last two years and there is a greater balance in the supply chains.
“The services sector pulled out all the stops to drive growth in March, and is also increasingly becoming the main source of inflationary pressure as pricing power in manufacturing wanes,” he added.
As for France, the March composite PMI rose to 54 points from February’s 51.7, its best result in ten months, with the services PMI rising to 55.5 points from 53.1 the previous month, also in ten-month highs, while the manufacturing PMI limited its contraction, with a reading of 47.7 integers, compared to 47.4 in February.
“The eurozone’s second-largest economy is showing remarkable resilience in the face of rising interest rates and high inflation,” said Joe Hayes, senior economist at S
“The easing of cost pressures, especially on the manufacturing side, has allowed companies to be less aggressive in pricing,” he added, stressing that while input and output inflation slowed in March, it is still high.
