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Euro zone private sector growing
23 Apr 2014 15:03
The euro zone's private sector has started the second quarter on its strongest footing in nearly three years, but growing new orders were again mainly buoyed by firms cutting prices, surveys showed today.
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The services industry performed better than any of the economists polled by Reuters had expected.
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Manufacturers also had a stronger month than the median forecast had suggested.
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"It's pretty encouraging considering what we have seen for years. We are looking at 0.5% quarter on quarter GDP growth if we continue to see this level," said Chris Williamson, chief economist at Markit.
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"The main concern is that signs of deflationary forces are still very much apparent," he added.
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Worryingly for policymakers, who have struggled to bring inflation up to their 2% target ceiling, service firms cut prices for the 29th month in a row - and did so at a steeper pace than in March.
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