NTC said national indices showed expansion for five of the eight countries covered by the survey - France, Italy, Spain, Ireland and Greece.In Germany, Austria and the Netherlands the headline index rose but remained below 50.
A pick-up in demand has pulled euro-zone manufacturers out of recession and a return to growth in the sector is tantalisingly close, a major survey showed yesterday.
The Reuters Euro-zone Purchasing Managers' Index rose for the fifth month running to reach the critical 50 line that divides shrinkage from growth, showing manufacturing activity has stabilised after 11 months of contraction. It was just below economists' consensus forecast of 50.2 and compares with 48.6 in February and a series low of 42.9 in October.
The index fell short of showing outright expansion largely because manufacturers are reluctant to take on new staff until the speed and strength of economic recovery becomes clearer. In many cases staff were laid off in an effort to improve profit margins, said NTC Research, which compiles the survey. "Employment is improving but relatively slowly and that's typical of euro zone economic cycles," said Mr Ken Wattret at BNP Paribas in London.
The survey will reinforce perceptions that the European Central Bank will leave benchmark interest rates at 3.25 per cent at its meeting tomorrow because the euro zone, along with the rest of the world, is now on the way to economic recovery.
An equivalent survey of manufacturing in the United States compiled by the Institute of Supply Management showed the headline index at 55.6 in March from 54.7.
