The S&P Global PMI output index said the growth was a sign the economy is reviving. The index added that the overall growth is still at a modest rate, with manufacturing taking a big hit still.Economic growth in the Eurozone accelerated in March to a ten-month high, the S&P Global PMI output index said in its latest report on Friday.

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The indicator was at 54.1, up from 52.0 in February. A reading that surpasses 50 is considered growth in economic activity.

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The index considered the growth a sign of a reviving economy, after late last year's decline.

The Russian war on Ukraine, coming on the heels of a two-year global pandemic that brought several economies to a halt, has left much of the world's economy struggling with inflation, stunted growth, and the looming prospect of recession.

What did the report say?

Inflationary pressures were in ongoing moderation, and jobs growth was accelerating, the index said.

However, the index warned that the overall growth rate was still modest, adding that it was mainly driven by the service sector, with the manufacturing sector still relatively stagnant.

The index reported the loss of new orders in the manufacturing sectors, "meaning current output is only being sustained via backlogs of previously placed orders."

The index also warned of continued high levels of overall input costs and selling price inflation rates "by historical standards." It added that a rise in charges was taking place at a pace unseen before the pandemic.

"Such stubborn inflationary pressures, fueled primarily by the service sector and rising wage costs, will be a concern to policymakers and suggest that more work may be needed in terms of bringing inflation down to target," said Chris Williamson, Chief Business Economist at S&P Global Market Intelligence.

rmt/rc (AFP, Reuters)

(The above story first appeared on LatestLY on Mar 24, 2023 04:40 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).