Euro zone business growth at 15-year high as demand unleashed -PMI

LONDON, June 23 (Reuters) – Euro zone business growth accelerated at its fastest pace in 15 years in June as the easing of lockdown measures unleashed pent-up demand and drove a boom in the dominant services sector but also led to soaring price pressures, a survey found.

When the coronavirus was spreading rapidly, governments imposed strict restrictions, encouraging citizens to stay at home and forcing much of the service industry to close.

But after a slow start the region’s vaccination drive is picking up pace and the burden on health services has eased, allowing some restrictions placed on services firms – which were already adapting to new operating conditions – to be lifted.

That led to a jump in IHS Markit’s Flash Composite Purchasing Managers’ Index, seen as a good guide to economic health, to 59.2 from 57.1, its highest reading since June 2006. It was ahead of the 50 mark separating growth from contraction and a Reuters poll estimate for 58.8.

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