Business and Economic Activity in the Euro Zone Surges
Published By : 23 Feb 2015 | Published By : QYRESEARCH
Over the past seven months, economic activity in the Euro zone has been surging, and has reached a high point. This has had a major impact on the performances of businesses in the Euro zone. As a result, several companies are on a business expansion mode via greater employment and hiring activities. As per industry estimates and latest industry reports, service companies are specially exhibiting high rate of growth.
The purchasing managers’ index during the month of February reached 53.5, as against 52.6 in the previous month. Any statistical figure that exceeds 50 points shows a situation of business expansion, whereas, any figure that goes below 50 shows a certain trend of business contraction. As a matter of fact, since 2011 August, numerous firms have taken to aggressive hiring policies and the rate of employment has been exhibiting a rather substantial figure. The main reason behind such a step being taken by the companies is to meet the rising demand. The performance of customer service companies has specially been good, and has surpassed the performance of the manufacturing units. Several businesses all over Europe have been able to minimize their costs of production mainly because of falling oil prices. In fact, several European economies have been witnessing high rates of growth for quite some time now.
Declining growth of output was in a way cancelled out because of robust growth facing the services sector in Germany. Since April 2014, France has been witnessing surge in economic and business activity and had reported rapid rate of growth since August 2011. However, industry reports also point out that there is excessive dependence of the eurozone on the service sector. Economic slowdown in Greece in fact, has negligible effect on the total output and the production capacity of the Euro zone.