Euro-Area Companies step up hiring as ECB embarks on 1.1 trillion-euro quantitative-easing program

Euro-Area

Euro-area companies have increased hiring as manufacturing and services activity from Germany to Spain accelerated faster than the estimations of economists.

According to data from London-based Markit Economics, a gauge of employment in both industries rose in January to a level not exceeded since mid-2011.

A Purchasing Managers' Index increased to 52.6 from 51.4 in December, exceeding a January 23 preliminary reading of 52.2.

The 19-nation euro economy will get benefitted from a decline in oil prices and a weaker euro. European Central Bank (ECB) has announced a 1.1 trillion-euro ($1.2 trillion) extensive quantitative easing scheme, which last until at least September 2016.

ECB introduced the scheme under the threat of deflation, which is considered to be a calamity for a monetary economy.

Chris Williamson, chief economist at Markit said, "The rate of job creation is adding to signs of increasing optimism among employers about the year ahead".

He added that the survey data is steadily running with gross domestic product rising by 0.3% in the first quarter. The ECB's scheme should help to drive stronger growth in coming months.

The euro-area economy expanded 0.2% in the third quarter. Economists in Bloomberg's monthly survey anticipate the same rate of growth for the final three months of 2014.

Markit said that the region's labor market might approach a turning point. Although, the rate of job creation was the fastest in more than 7 years in Spain, and a similar gauge for Germany rose to an 11-month high, job losses were registered in both France and Italy at the same time.

According to Williamson, the noticeable performers in terms of the pace of economic growth and hiring are Spain and Ireland.

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