Purchasing Managers Index for the manufacturing of the eurozoneGrowth rate of manufacturing activity in the euro zone in April were stronger than originally thought . Revival of activity in the region was of a large-scale in nature, and he contributed to the acceleration of growth in Italy, which in recent years has been one of the weakest economies in the region .
Nevertheless , manufacturers reported a decline in prices for the second month in a row , recalling that low inflation is likely to continue to disturb the European Central Bank over the next months. The company also reported a decline in the value of goods and services they use to manufacture their products.
Purchasing Managers Index (PMI) for the manufacturing , which is calculated by Markit based on the results of a survey of 3000 companies in April rose to 53.4 from 53.0 in March. According to preliminary estimates , published last month, in April the index was at 53.3 .
A reading above 50 indicates an increase in activity compared with the previous month .
Began in the 2nd quarter of the economic recovery seems to have become more widespread : PMI index of all countries in the region , which is calculated on the basis of a common eurozone PMI , signal the increase in activity is observed for the first time since November 2007.
" Recovery is an increasingly broad-based . One can hope that it has become more stable , as rising demand from each of the eurozone countries contributes in other countries "- said Chris Williamson , chief economist at Markit.
As follows from the results of the survey , manufacturing activity increased for the past 10 consecutive months and it seems to continue to grow in the coming months , given the increase in new orders. This growth demands include an increase in orders from the U.S. and Asia, despite fears that a stronger euro could lead to reduced competitiveness of eurozone products on world markets.
Increased activity contributed to increased hiring of workers for the fourth consecutive month , with growth rates of employment were the highest since August 2011 .
The ECB is likely to see continued growth in the sign manufacturing activity confirm that the seven-month period of very low inflation has not prevented the moderate economic recovery that began in the 2nd quarter of 2013 , while the International Monetary Fund and other organizations warned that this could happen.
On Wednesday, the Bureau of Statistics of the European Union Eurostat reported that consumer prices in the euro area in April rose by 0.7% compared with the same period last year. Thus , annual inflation rose in April compared with the March index , stood at 0.5 %. ECB's target level for annual inflation is slightly below 2.0%.
According to the ECB , while inflation will remain low throughout most of the year , a gradual recovery in economic activity will slowly push the pace of price increases in the direction of the target level . In this case the central bank do not see significant risk slipping into deflation eurozone , or the period of self-reinforcing decline in prices .
Nevertheless , a survey of manufacturers revealed that inflationary pressures declined in April : the company reported a drop in purchase prices for raw materials and other goods necessary for the production , while the producers themselves reduced selling prices for consumers. The Netherlands became the only country in the euro zone from the selection in the poll , which saw an increase in producer prices .
Nevertheless , manufacturers reported a decline in prices for the second month in a row , recalling that low inflation is likely to continue to disturb the European Central Bank over the next months. The company also reported a decline in the value of goods and services they use to manufacture their products.
Purchasing Managers Index (PMI) for the manufacturing , which is calculated by Markit based on the results of a survey of 3000 companies in April rose to 53.4 from 53.0 in March. According to preliminary estimates , published last month, in April the index was at 53.3 .
A reading above 50 indicates an increase in activity compared with the previous month .
Began in the 2nd quarter of the economic recovery seems to have become more widespread : PMI index of all countries in the region , which is calculated on the basis of a common eurozone PMI , signal the increase in activity is observed for the first time since November 2007.
" Recovery is an increasingly broad-based . One can hope that it has become more stable , as rising demand from each of the eurozone countries contributes in other countries "- said Chris Williamson , chief economist at Markit.
As follows from the results of the survey , manufacturing activity increased for the past 10 consecutive months and it seems to continue to grow in the coming months , given the increase in new orders. This growth demands include an increase in orders from the U.S. and Asia, despite fears that a stronger euro could lead to reduced competitiveness of eurozone products on world markets.
Increased activity contributed to increased hiring of workers for the fourth consecutive month , with growth rates of employment were the highest since August 2011 .
The ECB is likely to see continued growth in the sign manufacturing activity confirm that the seven-month period of very low inflation has not prevented the moderate economic recovery that began in the 2nd quarter of 2013 , while the International Monetary Fund and other organizations warned that this could happen.
On Wednesday, the Bureau of Statistics of the European Union Eurostat reported that consumer prices in the euro area in April rose by 0.7% compared with the same period last year. Thus , annual inflation rose in April compared with the March index , stood at 0.5 %. ECB's target level for annual inflation is slightly below 2.0%.
According to the ECB , while inflation will remain low throughout most of the year , a gradual recovery in economic activity will slowly push the pace of price increases in the direction of the target level . In this case the central bank do not see significant risk slipping into deflation eurozone , or the period of self-reinforcing decline in prices .
Nevertheless , a survey of manufacturers revealed that inflationary pressures declined in April : the company reported a drop in purchase prices for raw materials and other goods necessary for the production , while the producers themselves reduced selling prices for consumers. The Netherlands became the only country in the euro zone from the selection in the poll , which saw an increase in producer prices .