Thanks to booming demand for European products and orders flooding in the Eurozone was able to record bumper business growth in Q1.
Sustained low prices and the prospect of no immediate change led to new orders growing faster than at any time since 2011
While the growth rate for the first quarter appears modest analysts are expecting quicker expansion later in the year.
Dig deeper into the Markit Purchasing Managers’ figures, however and they reveal companies have now been cutting prices for three straight years, although those price cuts are now smaller than before.
A new point of equilibrium may about to be reached, especially with the effects of the ECB’s massive cash injection yet to be felt in Europe, which should add some heft to Q1’s current +0.3% GDP growth forecast, to be confirmed at the end of this month.