Euro area’s service sector activity continues to grow firmly in March, PMI index rises to 53.3

Euro area’s services sector activity continues to grow strongly in March. The IHS Markit Services Business Activity Index rose further above the 50 no-change mark, reaching a level of 53.3, from 52.8 in February. The latest reading is the best seen since November 2018. Growth was led by Germany and Spain, where rates of growth bolstered since February. Ireland also recorded a marked rise in activity, whilst strong growth was seen in Italy. France recorded a marginal contraction in the month.

A rise in new business volumes underpinned the upturn in overall activity, growing to the strongest degree in four months. The more positive demand environment encouraged companies to again take on additional staff at a strong rate. Germany, Ireland and Spain all saw marked gains in employment since the previous month.

Wage pressures continued to be the main source of rising overall operating costs in March. However, the extent to which input prices rose was the lowest seen by the survey in just under a year. On the contrary, output charges were raised at the most rapid rate since January 2018. With activity and new work rising at stronger rates in March, service providers were a little more confidence about the future. According to the latest data, business sentiment rebounded in the month to its highest level since September 2018.

At 14:00 GMT the FxWirePro's Hourly Strength Index of Euro was neutral at 38.3727 while the FxWirePro's Hourly Strength Index of US Dollar was neutral at -31.0727 more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex