acrossthecurve). This barometer signals that the Euro Area industry is accelerating - a sign that the whole economy is recovering.
The area is clearly benefitting from the drop of the Euro. The common currency lost more than 20% since last summer, making European exports more competitive on the global markets. The drop of oil and other commodity prices also creates a lot of tailwinds because consumers have more money to spend and companies lower costs. The massive stimulus program of the European Central also is a great help.
I suppose that the tailwinds will continue in the coming months and we will get more positive surprises from the Euro Area. Welcome back Europe.