INFLATION across the Eurozone accelerated at a record pace this month, Markit’s latest purchasing managers’ index (PMI) revealed yesterday.
Inflation was driven particularly by the manufacturing sector, from which output prices hit a series record high.
Activity in the factory industry grew at its fastest rate since June 2000, reaching 59 in the index.
And the whole of the private sector performed well across the single currency area, reaching a headline output score of 58.4, the highest in four-and-a- half years. All PMI scores above 50 indicate growth.
“The data reinforces expectations of a first European Central Bank rate hike in the second half of this year,” commented ING’s Martin van Vliet. Consumer price inflation in the Euro area hit 2.4 per cent last month.
The manufacturing resurgence is being boosted by exports, Markit revealed. New factory orders matched last March’s ten-year high, with exports showing the largest monthly increase since April 2000.
Even peripheral states saw stronger manufacturing exports, Markit said.