Euro Zone Business Activity Surges Amidst Manufacturing Revival

Euro zone business activity surged to a seven-month high in March, driven by easing manufacturing downturns and slower services growth. The Purchasing Managers' Index rose to 50.4, indicating modest growth. Infrastructure spending plans, especially in Germany, could further boost economic prospects.

In March, the euro zone witnessed a significant surge in business activity, marking the fastest growth in seven months. This uptick is largely attributed to the easing of the prolonged manufacturing downturn, even as the services sector exhibited slower growth, according to a recent survey.

The composite euro zone Purchasing Managers' Index, provided by S&P Global, rose to 50.4 from February's reading of 50.2, the highest since August. Though the growth was modest, the index has maintained its position above the 50 mark, which separates expansion from contraction, throughout the year.

Manufacturing saw a notable improvement with its PMI jumping to 48.7, its highest in over two years, while the factory output index showed expansion, rising to 50.7. This optimistic trend is further supported by Germany's plans for infrastructure and defense spending, promising potential economic recovery.

(With inputs from agencies.)