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Bloomberg
Europe’s biggest economies beat expectations as business activity returned to growth, boosting the chances they can stave off recessions. Gauges of private output in Germany and France both signaled expansion in February after pullbacks in January, while the UK’s purchasing managers’ index showed the first positive reading in six months — jumping to 53 from 48.5.
In the 20-nation euro zone, activity rose at the fastest pace since May 2022.
The numbers suggest the economic downturns many analysts had forecast after Russia’s war in Ukraine sent energy prices rocketing may not materialize, though the Bundesbank says Germany may yet endure a slight contraction in 2023.
There are potential knock-on effects for monetary policy.