Two new reports have painted a brighter picture of business conditions in the euro zone and its biggest economy, Germany, this month.
A survey showed that private sector business activity across the euro zone shot up in March, with the largest increase since August 2007. The figures suggest an improvement in unemployment figures could in the offing.
The purchasing managers' index (PMI) for the euro zone, compiled by data and research group Markit, jumped to 55.5 points from 53.7 in February. Any figure above 50 indicates economic growth.
New orders also rose sharply, with new export orders growing at their fastest rate since April 2006.
'The combination of rising demand in key export markets and a competitive exchange rate has helped to boost manufacturing growth to a pace seen only once before in the past 10 years,' said Markit chief economist Chris Williamson. He said the euro zone service sector also showed some signs of renewed life, growing at the fastest pace since late 2007.
German business more confident
A separate survey showed that firms in Germany, the world's second-largest exporter after China, were much more confident about their future in March.
The closely-watched Ifo survey jumped to 98.1 points, the highest level since June 2008, rebounding after a surprise fall in February to 95.2 points.
The survey of around 7,000 firms in the key manufacturing, construction, wholesaling and retail sectors is seen as a guide to future economic performance.
'Spring has now too arrived in the German economy,' said Hans-Werner Sinn, the institute's president. The survey dropped last month after 10 consecutive gains, a dip that was blamed mainly on the country's bitterly cold winter, which dampened construction and retail activity.
The German economy is recovering slowly from its worst recession since World War II, with output slumping by 5% last year. Despite predictions of a solid return to growth in 2010, the economy stagnated in the fourth quarter of 2009, according to the last figures available.
