Eurozone PMI rises to three-month high

Economic activity in the eurozone improved more than expected, with the Markit flash purchasing managers' index for March reaching a three-month high as both services and manufacturing sectors rose higher than forecasts.

The eurozone PMI rose to 54.0 from 53.3 a month ago, beating consensus forecasts for an unchanged figure and hitting a three-month high.

Markit's manufacturing PMI also grew to a two-month high of 51.4 in line with estimates and up from 51.2 in February.

The composite output index grew to 53.7 from 53.0 the month before.

Although the eurozone economy regained some momentum after the declines seen in the prior two months, the average
PMI reading for the first quarter of 53.4 was the lowest quarterly trend for a year, indicating a slowing in the pace of economic growth for the bloc.

Prices continued to fall at the second-fastest rate seen for just over a year, with average input costs dropping for a third successive month.