Eurozone sees fastest growth in four years: Report

ANKARA

The Eurozone is seeing broad-based growth in its business activity -- the fastest in four years -- the Markit Eurozone Composite Purchasing Managers' Index has reported.

 Eurozone PMI was at a 46-month high at 54.1 in March from 53.3 in February as an upturn in business activity was fueled by rise in orders, according to the report released Tuesday.

The improvement was broad-based across sectors, the report said, adding: "Growth of services business activity and new business both hit the highest since May 2011, accompanied by stronger rates of increase in both manufacturing output and new orders to the highest since May of last year."

Employment growth meanwhile picked up to its fastest pace since August 2011.

Job creation in the service sector held steady at the near four-year high seen in February, while factory headcounts showed the largest monthly improvement since April last year, according to the report.

Gaining momentum

For the first time in seven months, prices rose for manufacturers while, in the services sector, prices dropped only slightly, the report noted.

A sharper rise in prices is expected by the European Central Bank by the end of the year, as its economic stimulus program progresses.

Chris Williamson, chief economist at Markit, said: "The eurozone’s economic recovery gained further momentum in March, with the PMI hitting its highest for almost four years.

"The improvement provides welcome news to a region awaiting signs that the ECB’s quantitative easing is stimulating the real economy."

Williamson said that the ECB's quantitative easing program was helping to drive greater business investment and hiring, and helping to show that the recovery is sustainable.

Eurozone GDP growth stagnated at 0.1 percent in 2014, but the ECB forecast 1.5 percent growth for this year.