Euro zone March business growth strong but outlook darkens -PMI

Shoppers walk past a beggar, amid the coronavirus disease (COVID-19) pandemic in Berlin, Germany, December 14, 2020. REUTERS/Hannibal Hanschke

LONDON, March 24 (Reuters) – Euro zone business growth was stronger than expected this month, a survey showed on Thursday, although prices rose at a record pace, likely adding to pressure on the European Central Bank to raise interest rates.

However, some of that expansion came from a rebound following the lifting of COVID restrictions and the outlook is murky as supply chain issues caused by the coronavirus pandemic have worsened following Russia’s invasion of Ukraine.

S&P Global’s Flash Composite Purchasing Managers’ Index, seen as a good gauge of overall economic health, slipped to 54.5 in March from 55.5 in February although it was comfortably above the median 53.9 forecast in a Reuters poll.