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| Eurozone Economy Gains Momentum, Survey of Private Sector Shows | Eurozone Economy Gains Momentum, Survey of Private Sector Shows |
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| PARIS — The eurozone economy perked up again this month, a private sector report showed on Friday, powered by continuing strength in Germany and surprisingly strong growth in France. | PARIS — The eurozone economy perked up again this month, a private sector report showed on Friday, powered by continuing strength in Germany and surprisingly strong growth in France. |
| Purchasing managers across the eurozone, the 19-nation currency union, reported increased backlogs of work and an improvement in demand, leading companies to add workers at the fastest pace since August 2011, according to a survey by Markit Economics, a data analysis firm in London. | Purchasing managers across the eurozone, the 19-nation currency union, reported increased backlogs of work and an improvement in demand, leading companies to add workers at the fastest pace since August 2011, according to a survey by Markit Economics, a data analysis firm in London. |
| Markit’s composite output index for the eurozone came in at 53.5 for February, up from 52.6 in January. A number above 50 signals that the economy is expanding, while a figure below that suggests contraction. The purchasing managers’ data is thought by economists to provide one of the best snapshots of the economy. | Markit’s composite output index for the eurozone came in at 53.5 for February, up from 52.6 in January. A number above 50 signals that the economy is expanding, while a figure below that suggests contraction. The purchasing managers’ data is thought by economists to provide one of the best snapshots of the economy. |
| Production of official data for the eurozone, compiled from the 19 countries’ national statistics agencies, tends to lag behind similar data for the United States and other developed countries. | Production of official data for the eurozone, compiled from the 19 countries’ national statistics agencies, tends to lag behind similar data for the United States and other developed countries. |
| An index geared specifically to France showed output in February swinging back into expansion, at 52.2 from 49.3 in January, and rising at the fastest pace since the summer of 2011. It was the first increase in French output since last spring, Markit said. German output also reached a seven-month high this month, the company found. | An index geared specifically to France showed output in February swinging back into expansion, at 52.2 from 49.3 in January, and rising at the fastest pace since the summer of 2011. It was the first increase in French output since last spring, Markit said. German output also reached a seven-month high this month, the company found. |
| Chris Williamson, Markit’s chief economist, said the February data suggested that the eurozone would post quarterly growth of about 0.3 percent in the January to March period, or about 1.2 percent at an annualized rate. | Chris Williamson, Markit’s chief economist, said the February data suggested that the eurozone would post quarterly growth of about 0.3 percent in the January to March period, or about 1.2 percent at an annualized rate. |
| The economy “is gathering momentum and looks set to gain further traction in coming months,” Mr. Williamson wrote in the survey report. Signs that employment is growing at the fastest pace since 2011 suggest that employers are increasingly confident about growth, he added. | The economy “is gathering momentum and looks set to gain further traction in coming months,” Mr. Williamson wrote in the survey report. Signs that employment is growing at the fastest pace since 2011 suggest that employers are increasingly confident about growth, he added. |
| The eurozone economy expanded at a 1.4 percent annual rate in the fourth quarter, an official report showed last week. While that number was stronger than economists had expected, it was still behind the 2.6 percent annual pace in the United States. With demand crimped by high joblessness and limits on government spending, Europe is still struggling to leave behind the 2008 financial crisis and its debt aftereffects. | The eurozone economy expanded at a 1.4 percent annual rate in the fourth quarter, an official report showed last week. While that number was stronger than economists had expected, it was still behind the 2.6 percent annual pace in the United States. With demand crimped by high joblessness and limits on government spending, Europe is still struggling to leave behind the 2008 financial crisis and its debt aftereffects. |
| Such concerns are currently subservient to the tense negotiations over Greece’s finances, amid fears that the country could leave the eurozone. | |
| European officials on Friday were discussing whether to grant the new Greek prime minister, Alexis Tsipras, a six-month extension of a loan agreement so that Athens would have more time to convince its partners that it could come up with a credible growth and repayment plan. | European officials on Friday were discussing whether to grant the new Greek prime minister, Alexis Tsipras, a six-month extension of a loan agreement so that Athens would have more time to convince its partners that it could come up with a credible growth and repayment plan. |
| The eurozone’s tepid growth and ultralow inflationary pressures led Mario Draghi, president of the European Central Bank, to announce in January an initiative under which the bank will spend up to 60 billion euros, or about $68 billion, each month buying bonds, including government debt. The program of so-called quantitative easing is intended to help restore growth and inflationary pressures by flooding the financial system with liquidity and possibly driving down the euro. | |
| Reinforcing the fears of deflation, a report on Thursday from the French national statistics agency showed that consumer prices in France fell 1 percent in January from December, and 0.4 percent from a year earlier. The core rate, which strips out the impact of falling crude oil prices, came in at 0 percent. | |
| The euro, which has been trading near 11-year lows against the dollar on expectations of bond-buying by the European Central Bank, fell 0.5 percent to $1.1317 Friday morning after the purchasing managers report. The benchmark Euro Stoxx 50 index of blue-chip eurozone equities slipped 0.2 percent. |