Experts agree that the eurozone’s economy logged long-awaited GDP growth in Q2 2021. Besides, analysts point out considerable expansion in the composite PMI in all 27 EU countries on the back of easing restrictions on businesses and growing consumer confidence.
Economists say that the bottom line behind a robust economic recovery in the EU is the successful mass vaccination against the coronavirus. As more and more EU citizens are getting vaccinated, the authorities are lifting lockdown measures in all economic sectors. Such developments have a benign effect on consumer activity.
According to the IHS Markit survey posted on May 21, business activity in the eurozone is clicking into gear. For example, France’ service sector is picking up steam. In April 2021, the services PMI surged to 56.6 in France from the previous 50.3 in March.
On the whole, the eurozone’s service sector expanded in May to the largest degree for more than three years. Against this background, experts believe in the short-term bullish outlook for the EU economy. In Q2 2021, EU businesses recorded the strongest growth in durable goods orders over the recent 15 years. Interestingly, analysts at IHS Markit suppose that business activity could have expanded to a greater extent if European companies had no logistics problems and were able to meet the current demand.
An array of these factors accounts for inflationary pressure in the eurozone. Manufacturing companies reported on a record increase in commodity prices that forced them to raise factory gate prices. On the other hand, prices for services eased a pace of growth across the eurozone.
