Business activity in the euro zone has accelerated much faster than thought this month, in a sign the European Central Bank’s bond-buying programme may already be paying dividends, a survey showed yesterday.

The surveys also showed firms are still cutting prices to drum up business.

“There is some impetus from quantitative easing, although it is coming at a time when there was already growth, while domestic consumers have benefited from lower prices,” said Chris Williamson, chief economist at survey compiler Markit.

Markit’s Eurozone Composite Flash Purchasing Managers’ Index, based on surveys of thousands of companies and a good growth indicator, jumped to a near four-year high of 54.1 from February’s 53.3. That beat the highest prediction in a Reuters poll and was the 21st month above the 50 level that separates growth from contraction. – Reuters