Business activity in the euro zone hit an eight month high in May, a survey shows today, giving a boost to the euro and hopes that the worst of the slump may be easing.
The euro zone's purchasing managers' index (PMI), compiled by data and research group Markit, rose to 43.9 points in May from 41.1 points in April, according to a first estimate. The index hit a record low of 36.2 points in February.
Today's latest figures, although an improvement, remain below the boom-bust line of 50 points for a 12th consecutive month in the recession-hit euro zone economy.
The outcome 'is another sign of a clear pick-up from the record fall in output seen in the first quarter,' Markit said.
While companies continued to cut jobs for an 11th consecutive month, the rate of lost jobs eased for the first time since the beginning of the crisis, even if the improvement was only slight, Markit said. It said this was an 'encouraging' development.
The service sector PMI rose to 44.7 points in May, its highest level in seven months, from 43.8 points in April. For manufacturers, the PMI jumped to 40.5 points, another seven-month high, from 36.8 points in April, with the gain the largest on record.
