Euro area set for robust growth this year

Frankfurt

THE euro area has entered a year of solid economic growth that may see companies expanding capacity to meet increasing demand, Markit Economics said.

A Purchasing Managers' Index for manufacturing and services unexpectedly rose to 54.3 in December from 54.2 in November, compared with a Dec 16 estimate for a drop to 54, the London-based company said. The data suggest growth in the final quarter of 2015 was the fastest in 4 1/2 years, according to the report.

The economic recovery in the 19-nation euro area is picking up as unprecedented stimulus by the European Central Bank reaches companies and households. While inflation remains stuck far closer to zero than to the ECB's goal of just under 2 per cent, bank lending is improving and economic confidence is at the highest…