Euro-area services output remained close to the highest level since 2011 in March, signalling that the economic recovery in the 18-nation euro area is on track.
An index based on a survey of purchasing managers slipped to 52.2 from 52.6 in February, London-based Markit Economics said in a statement.
While that's less than the initial estimate of 52.4 published last week, the data shows that the euro area is still set to grow at the fastest rate in three years, said Chris Williamson, Markit's London-based chief economist.
The report supports the European Central Bank’s projection that the euro-area economy will return to full-year growth in 2014 and could serve as an argument for policy makers to refrain from cutting interest rates today.
At the same time, with inflation in the currency bloc well below the ECB’s target, some officials have argued in favor of more stimulus.
“The region’s recovery in terms of economic growth is in line with policy makers’ expectations, but the concerns will lie with the price data,” Mr Williamson said.
The composite index for services and manufacturing declined to 53.1 from 53.3, according to today’s report. A measure of new orders slipped to 52.5 from 52.6.
Meanwhile, UK services growth unexpectedly slowed in March and measures of new business and hiring by companies declined.
A Purchasing Managers’ Index declined to 57.6 from 58.2 in February, Markit Economics said in London. While manufacturing and construction also grew at a slower pace in March, Markit said its three industry reports indicate the UK economy expanded at least 0.7 per cent in the first quarter.
Spain’s service sector expanded in March, fuelling hopes of overall economic growth in the first quarter after the country emerged from recession in the second half of 2013.
Markit’s Purchasing Managers’ Index for the service sector, which makes up about half of economic output, rose to 54.0 in March from 53.7 in February, marking the fifth straight month the index was above the 50 line separating growth from contraction.
Bloomberg
