Data released this morning shows that business activity in the eurozone region is growing at its fastest pace for 15 years. Chris Williamson of IHS Markit said “businesses report surging demand, with the upturn becoming increasingly broad-based, spreading from manufacturing to encompass more service sectors, especially consumer-facing firms.”

June numbers for the UK were slightly lower than those for May but continue to indicate a strong momentum of expansion. However, Chris Williamson warned that “inflation worries have continued to intensify” and commented that the data hints strongly that “consumer price inflation has much further to rise after already breaching the Bank of England’s 2% target in May”.

Markets were lifted on Tuesday after US Fed Chair Jerome Powell restated the view that the recent spike in inflation would be temporary and that the central bank would maintain interest rates close to zero for some time to come.

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