The Eurozone growth is at its highest for the last six years for the first months of 2017, according to a flash PMI index report by IHS Market.
The data suggests that Europe has shrugged off Brexit concerns, noting an unexpected rise in growth.
IHS Markit revealed that its composite Purchasing Managers’ Index (PMI) for the eurozone’s manufacturers and service providers, based on a survey of 5,000 companies, rose to 56.7 in March from 56.0 in February. This marks its highest level in six years.
“The acceleration in growth towards the end of the quarter, as well as improving trends in new business and an increased appetite to hire, suggest that strong growth momentum will be sustained into the second quarter,” commented Chris Williamson, IHS Markit’s chief business economist.
The PMI figures mark an encouraging set of data for the European Union, which has been shrouded with concern over its future preservation in light of growing global populist sentiment and the UK’s decision to withdraw.
The survey found that growth was bolstered by strong performances from France and Germany’s services sectors.
“Perhaps the best news came from France, where growth has risen above that seen in Germany, led by strengthening domestic demand,” Mr Williamson added.
Whilst the rise of Trumpism and Brexit suggested that Europe had been hit by a wave of nationalism, the recent Dutch elections results suggest otherwise. The continent continues to watch intently for developments in the French presidential election, where National Front leader Marine Le Pen continues to command a substantial amount of support.
Nevertheless, Mr Williamson remained upbeat. He continued: “While elections remain a worry regarding the outlook, for now the business mood in France and across much of Europe is very positive.”
This follows comments made by European Commission President Junker to the BBC, who claimed that Brexit was a “a failure and a tragedy”.
Prime Minister Theresa May is reportedly set to initiate the process to withdraw from the EU next Wednesday, however it remains to be seen whether the recent terrorist attack in Westminster may stall the procedure as the Government looks to prioritise national security over negotiations.