European growth defies uncertainty to hit six-year high

Fears over a populist political tide sweeping across Europe have done little to set back the Continent’s economic performance after figures today showed growth at a six-year high.

The latest snapshot the eurozone’s private-sector manufacturers and services firms from IHS Markit — revealing the fastest expansion since April 2011 — comes against the backdrop of deep political uncertainty following the Brexit referendum and Donald Trump’s White House win.

Although Mark Rutte fended off Geert Wilders’ Freedom Party in last week’s Dutch elections, Marine Le Pen is likely to be in the final run-off for the French presidency in May, and German Chancellor Angela Merkel faces elections.

But powerhouses France and Germany grew strongly despite rising price pressure.

The European Central Bank is pumping €80 billion (£69.2 billion) into the economy every month although the strength of the survey is usually at a level where the ECB would be hiking rates, according to IHS Markit’s chief economist Chris Williamson.

“Worries about consumer spending and business confidence haven’t emerged yet and the ECB could be behind the curve,” he said.