Euro area’s businesses point to best growth quarter since 2011

THE EUROZONE is set for the strongest quarter of economic growth in three years, according to figures published yesterday.

Markit’s purchasing managers’ index (PMI) for May, covering all sectors, came in at 53.5. The figure is down slightly from April’s three-year high, but any figure above 50 suggests that the economy is expanding. The services part of the PMI is now at a 35-month high, and output this quarter is now likely to be the best since 2011.

Eurozone GDP figures for the first quarter were also released yesterday, confirming a 0.2 per cent boost between January and March.

The figures come ahead of today’s European Central Bank decision on rates. Analysts expect that further easing to combat very low inflation will be announced.