Story: Business activity in the euro area returned to near growth in March.
Although better than expected, the recovery has been uneven.
While the services sector showed a strong recovery, the manufacturing sector endured a deep recession.
This comes from closely watched Purchasing Managers Index data released on Thursday (March 21).
The overall PMI was 49.9 this month, up from 49.2 in February and just below the 50 mark that separates growth from contraction.
The survey also showed that inflation pressures eased in March, giving a boost to European Central Bank policymakers.
Borrowing costs remained at record highs earlier this month, but analysts expect them to fall by the end of the year.
The PMI, which covers the region's major service industries, rose from 50.2 in February to 51.1, the highest level in nine months.
Demand for services increased for the first time since June.
However, the manufacturing PMI fell from 46.5 to 45.7, the lowest level in three months, far below expectations.
In Germany, Europe's economic powerhouse, the economic slump eased slightly in March.
The composite PMI for March rose to 47.4 from 46.3 in February, exceeding expectations.
However, the situation in France was not so bright.
According to PMI, business activity contracted in March for the 10th consecutive month.
Demand for French goods and services deteriorated and employment fell.
