Eurozone economy holds at six-year high in May

The eurozone economy grew at its fastest pace in six years in May as job creation in Europe picked up to its highest level in a decade, a closely watched survey showed Tuesday. Data monitoring company IHS Markit said its May Composite Purchasing Managers Index came in at 56.8 points, unchanged from April which was also the best for six years. The PMI measures companies' willingness to invest in their business and so gives a good idea of how well the underlying economy is performing. Any reading above the boom-bust 50 points line indicates the economy is expanding. IHS Markit said the 19-nation eurozone economy was doing well on all fronts. "Job creation... perked up to one of the strongest recorded over the past decade amid improved optimism about future prospects," it said in a statement. Broken down, the figures showed the services sector -- which accounts for the bulk of economic activity -- remained unchanged at 56.2 points in May. The manufacturing output PMI meanwhile rose to 58.4 points from 57.9. IHS Markit chief business economist Chris Williamson said the May report suggested the eurozone economy would grow by about 0.6-0.7 percent in the second quarter, on par with the first three months of the year. "The PMI data indicate that eurozone growth remained impressively strong in May," Williamson said in the statement. He said the employment situation was particularly encouraging "as firms seek to expand capacity and meet rising demand," which was also a sign that below target inflation could rise too. Having overcome worries about its recent elections, France was showing signs of "robust" business activity, Markit said. French businesses reported the steepest rate of increase since May 2011, while German firms reported the best gain since April 2011, it said. The two countries are the eurozone's biggest economies.