The eurozone showed signs of economic recovery with the manufacturing index for April rising above economist’s expectations. The survey results highlighted that the manufacturing sector grew at its fastest rate for three years due to an increase in demand from Asia and the US. But despite the stronger than anticipated rise in the purchasing manager’s index (PMI), survey results also showed a rise in the cost of raw materials. Economists said that the figures would give the European Central Bank further reason to adopt a wait and see strategy, and give no reason to consider a cut in rates. Furthermore, the strong survey results for the PMI numbers - the tenth consecutive increase and the highest since November 2000 - indicate that the eurozone economy is finally gathering some momentum, though confidence is not fully restored because of weak domestic demand and high unemployment. Reuters/NTC Research interviewed 3,000 companies across the eurozone for the survey.

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