Euro zone economy showing some signs of recovery -PMI

The euro zone economy showed tentative signs of recovery at the start of the year, according to a survey which showed rising inflationary pressures, bolstering the European Central Bank's case for keeping interest rates at record highs. The output prices index rose to an eight-month high of 54.2 from 53.8. "The European Central Bank's hesitancy to cut interest rates gains clarity when considering the surge in the PMI price indices," said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.