Europe’s Two Biggest Economies Grow Strongly as Virus Recedes

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Growth in Europe’s two biggest economies picked up sharply in February as the region moved past the peak of the latest wave of coronavirus infections.

In Germany, private-sector output grew at the fastest rate in six months, driven mainly by services activity, according to business surveys released Monday by IHS Markit. French expansion was the strongest since June 2021, with both services and manufacturing showing better performances.

“The slump in January proved to be short-lived,” said Joe Hayes, senior economist at IHS Markit. “Now that the trajectory of Covid-19 in France is on the downturn, this should continue to facilitate greater activity levels across both sectors.”

German manufacturers reported a further easing of the supply bottlenecks that have plagued factories around the world. Inflationary pressures remained strong in both countries, however, with German output prices advancing at the second-fastest pace on record.

While French virus infections have been receding since late January, Germany only just moved past the peak of the latest omicron wave. The country joined others in scaling back restrictions last week.

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