ANKARA
Growth of business activity in the euro area economy hit a seven-month high in February, according to the Markit Eurozone Purchasing Managers Index.
The index rose to 53.5 from 52.6 in January. It was the third month in a row that the index accelerated, driven higher by stronger demand, Markit said in a statement Friday.
New orders also grew at the sharpest rate for seven months in February. Companies often struggled to cope with the increased inflows of new business, meaning backlogs of incomplete orders rose for the first time since last April. The rise was the largest since May 2011, Markit said in its monthly report.
Firms took on extra staff at the fastest rate since August 2011. Faster growth was seen in both manufacturing and services, where factory output and business activity measures hit seven-month highs, the report said.
Services continued to see the stronger pace of expansion of the two sectors, with manufacturing growth remaining relatively subdued. Inflows of new business into the service sector were also stronger than seen in manufacturing, with the latter recording only a marginal upturn in new orders, though still the best monthly improvement since last July, the report said.
Markit Chief Economist Chris Williamson said that the eurozone was experiencing an economic turnaround.
"Undeterred by the ongoing Greek debt crisis, economic growth is gathering momentum and looks set to gain further traction in coming months,” Williamson said in the report.
“Even more encouraging is the faster rate of job creation reported during the month. Employment is now rising at the steepest rate since 2011," he said.
According to the company's website, the Markit Purchasing Managers Index provides monthly economic surveys of carefully selected companies compiled by Markit.
