Euro Zone Business Growth Hits 15-Year High

Business activity in the euro zone expanded at its fastest pace in 15 years in June as lockdowns eased, according to the latest Purchasing Managers’ Index.

As lockdowns eased and the sun shone, the euro zone economy boomed.

That’s according to new figures out on Wednesday (June 23).

The closely watched composite Purchasing Managers’ Index for June jumped to 59.2, up from 57.1 the month before.

That’s well above the 50 point mark that indicates rising activity, and its highest reading in 15 years.

The rebound looks increasingly broad based.

After an earlier upturn in manufacturing, services are now booming too.

The index for that sector beat forecasts with a jump to 58.

Price pressures now look like the big worry.

Survey compiler IHS Markit says firms are struggling to meet demand for raw materials and staff.

That saw the input prices index for manufacturers hit its highest level since the index was first compiled in 1997.

Markit says further upward pressure on inflation looks inevitable over the coming months.