A survey has shown that activity at euro zone businesses improved this month to the highest level in six months, fuelling hopes the recession has bottomed out.
The purchasing managers' index (PMI), compiled by data and research group Markit, rose to 40.5 points from 38.3 in March, according to a first estimate.
Although the figure remained well below the key 50-point mark, which means a contraction in activity, it beat economists expectations.
The separate PMI index for the euro zone's vast service sector also gained ground, rising to 43.1 points from 40.9 in March. Meanwhile, the struggling manufacturing sector saw an improvement, with its index rising to 36.7 points from 33.9.
Europe is mired in its worst recession since World War II with the International Monetary Fund forecasting on Wednesday that the euro zone economy will contract by 4.2% this year.
Adding to the emerging signs of improvement, a separate report from the Eurostat EU data agency showed that factory orders fell by less than expected in February. New industrial orders fell 0.6% in February from January, bringing the drop over 12 months to 34.5%. Economists had expected a 2.5% monthly drop.
