The EU authorities are not prone to sugarcoat the state of affairs in the economy. Market participants are encouraged by convincing evidence from independent think tanks that the EU economy is gaining momentum. The economies of 27 EU countries have been picking up steam much faster than anticipated in expert forecasts.
Europe has entered the phase of a rapid economic recovery in the wake of the pandemic-driven crisis. According to IHS Markit analytics agency, the eurozone composite PMI climbed to 53.7 points in April from 53.2 in March, also better than expected. The index is basically an average score derived from a monthly survey of top managers of large corporations. The value above 50 points indicates the further expansion of business activity in both the service and manufacturing sectors. Chris Williamson, a chief economist at IHS Markit, said “the eurozone’s results came as a surprise to analysts as restrictive measures were reintroduced in many countries to contain the spread of the virus.” The EU authorities were braced for sluggish business activity and an economic downturn, but the opposite happened in practice. Europe is not going to give up, making determined efforts to boost its economic activity to the pre-crisis levels.
Reckoning short-term prospects, experts foresee a further increase in key economic metrics. They attach importance to robust consumer spending on services that proves a revival in the service sector. A few months ago, the manufacturing production was the main catalyst for an economic recovery. The EU service sector will receive a boost from the reopening of some economic sectors in the EU countries. This is expected in early May.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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