The euro zone sees the ‘burst of activity’

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The eurozone economy has ended the third quarter of the year on a good note, a survey has indicated.

The IHS Markit composite purchasing managers’ index (PMI) has suggested that private companies have grown more rapidly than expected in September.

He said that the manufacturers had enjoyed their best month since the beginning of 2011.

Chris Williamson, chief economist at IHS Markit, said: “the eurozone economy ended the summer with peaks of activity.”

Activity of the company during the month of September has seen one of its highest increases over the past six years, the survey revealed.

The “flash” PMI reading for the month of September – which is based on approximately 85% of the responses to the survey rose to 56.7 from the August reading of 55.7. A reading above 50 indicates growth.

The manufacturing sector saw the fastest rise in employment in over two decades, IHS Markit said, adding that the signs were that the next quarter register strong manufacturing growth.

The study also found that the recovery of the activity of the enterprise has been accompanied by rising pressures on prices, with the participation of cost and selling price inflation accelerating for the second month in a row.

He pointed out that the increase in activity and inflationary pressures fuel expectations that the European Central Bank, as it had long been expected to begin curbing its asset purchase program.

The ECB is currently buying 60bn euros (£55bn) of bonds a month under its quantitative easing program.

Earlier this month, the ECB raised its economic growth forecast for the euro zone for this year to 2.2%, the fastest in 10 years and suggested that it could be erased in asset purchases next month