Markit's Eurozone Manufacturing Purchasing Managers Index (PMI) rose to a 71-month high of 56.2 points in March this year, up from February’s 55.4 points and unchanged from the earlier flash estimate.
The upturn in the euro zone manufacturing sector gathered further pace at the end of the first quarter. Rates of expansion in production and new orders accelerated to near six-year highs, as companies saw stronger inflows of new work from domestic and export clients.
There were also signs that improving sellers’ pricing power contributed to cost increases during March. Average vendor delivery times - a bellwether of supply chain pressures - lengthened to the greatest extent since May 2011, allowing vendors to further push up their prices.
“All key business activity gauges - output, new order inflows, exports, backlogs of work and employment - are close to six-year highs,” stated Chris Williamson, chief economist at IHS Markit.