London: Eur-ope's services and manufacturing industries expanded more than economists forecast in April as an export-led recovery prompted companies to step up production.
A composite index based on a survey of euro-area purchasing managers in both industries rose to 57.3 from 55.9 in March, London-based Markit Economics said yesterday. That's the highest since August 2007. Economists forecast an unchanged reading, according to the median of 12 estimates in a Bloomberg survey.
European manufacturers are increasing output as an Asian-led global recovery boosts orders. In Germany, investor confidence rose in April. While Greece's fiscal crisis has pushed the euro lower this year, helping exports, it also has raised concerns about a possible default and prompted European authorities to offer an aid package.
"I expect a bit of a sideways move over the coming months," said Klaus Schruefer, an economist at SEB in Frankfurt. "Greece could become a certain economic burden, but a weakening euro is definitely good news."
The euro was little changed against the dollar after the data, trading at $1.3415 in London, up 0.2 per cent on the day. The yield on the German 10-year benchmark bond was unchanged at 3.08 per cent.
An index of services, which account for about 60 per cent of the region's gross domestic product, rose to 55.5 in April from 54.1 in the previous month, Markit said. A gauge of manufacturing increased to 57.5 from 56.6. A reading above 50 indicates expansion. The euro's 6.6 per cent drop against the dollar this year is helping boost companies' orders by making exports more competitive.
