Banking data released on Friday confirmed an acceleration in private sector activity in the Eurozone during February, driven by an increase in manufacturing output.
The preliminary composite Purchasing Managers’ Index (PMI) for the Eurozone rose to 51.9 points this month, compared to 51.3 points in January, marking its highest level in three months.
A PMI reading above 50 points indicates economic expansion, while a reading below that level reflects contraction.
Eurozone economy on a stable path
It was stated that “the Eurozone economy appears to be on a stable path.”
The Manufacturing PMI also rose to 50.8 points in February, compared to 49.5 points in the previous month.
It was added that “it is too early to be certain, but this could represent a turning point for the manufacturing sector as the index returns to expansion territory.”
Data unlikely to push the European Central Bank to adjust its stance
Meanwhile, the Services PMI recorded a slight increase to 51.8 points this month, compared to 51.6 points in January.
Economists do not expect this data to push the European Central Bank to adjust its stance on interest rates.
The central bank for the 21 member countries of the Eurozone kept its main interest rate at 2% this month, the level maintained since last June.
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It was noted that “the continued expansion of economic activity and the stabilization of services inflation at relatively high levels do not indicate an inclination by the European Central Bank to change its stance of keeping main interest rates unchanged.”
