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Strong services data suggests broadening Eurozone recovery

BUSINESS activity in the Eurozone accelerated in April to a 30-month high, according to Markit’s services purchasing managers’ index.

All 16 member states reported growth of activity in their service sectors last month, with France heading the pack.

The forward-looking elements of the survey were also upbeat, indicating good prospects for services activity in the coming months. New business showed the largest monthly rise since October 2007 while confidence about activity one year from now was at its highest since January 2006.

The composite index rose appreciably to 57.3 from 55.9 in March, its highest level since August 2007. While manufacturing is still leading the rebound, the service sector is showing renewed vigour.