Eurozone business activity picked up in April as the currency bloc’s dominant services industry overcame renewed lockdowns and returned to growth, according to a survey released on Wednesday by information provider IHS Markit.

The final composite Purchasing Managers’ Index, a closely-watched gauge of economic health, climbed to 53.8 in April from March’s 53.2. That exceeded slightly the preliminary reading of 53.7 and comfortably above the 50 borderline that separates expansion from contraction.

“The pace of vaccinations has continued to accelerate and some countries are easing restrictions. So there is a good chance that eurozone GDP posts a small expansion in Q2,” said Jack Allen-Reynolds at Capital Economics.

Meanwhile, in the US, private jobs growth accelerated in April but were a bit shy of economists’ expectations, according to a report published on Wednesday by payroll processing firm ADP. Companies added 742,000 employees during the month, a jump from March’s upwardly revised 565,000, but below the 800,000 forecast by economists. Leisure and hospitality, the sector that has been hurt the most by pandemic-related business lockdowns, led jobs growth with 237,000 new positions.

Employment in the industry is still about three million below its pre-pandemic levels but has been adding jobs steadily since federal and state governments have been relaxing restrictions. Goods-producing industries had a strong month as well, adding 106,000 jobs.

Finally, in the UK, the Bank of England kept its benchmark interest rate at an all-time low of 0.1 per cent and the size of its bond-buying programme unchanged at £895 billion, as expected by economists. At the same time, the central bank sharply increased its forecast for UK economic growth this year as Britain’s vaccine-fuelled coronavirus recovery picks up speed − and the bank kept interest rates at a record-low.

The central bank predicts gross domestic product will rebound by 7.25 per cent in 2021 up from its previous prediction of five per cent, a growth rate not seen since World War II.

This article has been prepared by Bank of Valletta plc for general information purposes only.