The euro area’s accelerating economy is translating into faster job creation and stronger inflation pressures.
A Purchasing Managers’ Index rose to 56.7 in March, the highest level in almost six years, from 56, IHS Markit said on Friday. That compares with economists’ expectation for a decline to 55.8 and is in line with a quarterly gross-domestic-product expansion of 0.6 percent. Employment rose the most since July 2007, with hiring picking up both in services and manufacturing.
A broadening recovery has so far allowed the currency bloc to weather a period fraught with uncertainties ranging from the U.K.’s Brexit vote to the U.S. administration’s trade policies, as well as upcoming elections in euro-area countries. As momentum gathers and a mostly oil-driven spike in inflation firms, the European Central Bank is coming under increasing pressure to plan an exit from its extraordinary stimulus.
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