Fighting with the prolonged economic recession, Euro zone has now come up with glimpses of recovery with increased business and market optimism concerning the future. Euro zone Composite Purchasing Managers’ Index (PMI), measuring business activities and magnitude of Euro zone has rallied to touch a higher level of 48.6 in the month of January, exceeding the reading of 47.2 in the month of December, 2012. An Index above 50 indicated expansion while below that level, economic contraction. Despite current index of 48.6 is below the much awaited and satisfactory level of 50, considering current economic sentiments and scenario in the single currency bloc, the reading is observed and taken as satisfactory as the same is in increasing trend since last three months.

With economic downturn in the Euro area easing and the bloc moving towards economic stabilization, the economy having private industry about two-third of its total economy, finally looks on a healing end by the end of the first quarter of the new year.

Despite having polarized Composite PMI in Germany and France, with its highest PMI index since June 2011, Germany seems to have covered France’s plummeted PMI, which in turn has hawked the overall Composite PMI of the single currency bloc. A huge round of applause must obviously go to the largest economy of the bloc, Germany.

The economy, having contracted by 0.4 percent at the end of December 2012, lately, amidst emerging optimistic economic indicators, seems to recover itself from the prolonged recession by the end of current year. With factories output on the improving end and inflation at its lower level since last two years with a reading of 2 percent, the economy, at this point of time, looks like in optimistic run.

Whatever the readings or numbers concerning economic position or performance be, it is only time that will tell the actual magnitude and direction that the single currency bloc will be heading towards.