Eurozone Business Recovery Accelerates in February; PMI Hit 9-Month High

Economic growth in the eurozone picked up speed in February and reached a nine-month high, according to the closely watched S&P PMI output index.

Data released on Tuesday revealed that S&P Global’s flash composite purchasing managers’ index (PMI) rose to 52.3 in February from 50.3 in January.

That’s well beyond the 50-point threshold between expansion and contraction. The figure for February was also better than expected in a Reuters survey, where participants predicted a more modest increase to 50.6.

According to a note published by S&P Global, business activity in the Eurozone surged above expectations in February, reaching a nine-month high on the back of a pick-up in the service sector. The PMI reading for February is consistent with GDP expanding by a quarterly rate of just under 0.3%.