Frankfurt - Euro-area factories expanded output at the
fastest pace since 2011 as the currency bloc’s economy continued to gather
momentum.
A gauge of manufacturing activity rose to 56.7 in April from
56.2 the previous month, IHS Markit reported on Tuesday. An April 21
preliminary estimate was for an increase to 56.8.
With the European Central Bank showing little hurry to end
extraordinary stimulus, global trade strengthening and political risk receding
as centrist Emmanuel Macron looks poised to become the next French president,
the currency bloc’s recovery is set to broaden.
Data on Wednesday
will show gross domestic product gained 0.5 percent in the first quarter,
according to a Bloomberg survey.
Read also: Euro zone recovery comes to a standstill
“Companies are benefiting from the historically weak euro,
improved growth in key export markets, rising domestic demand and ongoing
central-bank stimulus including record-low interest rates,” said Chris
Williamson, chief economist at IHS Markit.
“Optimism about the year ahead, meanwhile, appears
unaffected by political worries.”
Manufacturing grew in all of the eight countries covered
except Greece, where export orders decreased sharply.
The improvement in the euro area was supported by a pick-up
in new orders and the fastest pace of job creation in six years amid rising
backlogs of work. Data on Tuesday will show unemployment in the 19-nation
region fell to 9.4 percent in March, according to a separate survey.