Growth hopes for eurozone as manufacturing improves

“Despite having cooled slightly in March, the euro area manufacturing sector continues to enjoy its best spell of growth since early-2011. The rate of output growth remains encouragingly robust, with the survey indicating that production rose by around 1pc in the first quarter," he said.

"That means the goodsproducing sector is on course to provide a meaningful boost to the overall economy in the first three months of the year. The surveys are signalling a GDP increase of approximately 0.5pc."

The country-by-country figures showed that while growth in France, Italy and Spain had improved, growth in Germany slowed and Greece's manufacturing sector slipped back into contraction.

Separate figures released on Tuesday showed that unemployment in the euro area had declined slightly in February, but remained at 11.9pc as January's figure was revised down to the same level.

The most recent data puts unemployment 27.5pc in Greece and 25.6pc in Spain.

Although the manufacturing figures were a boost for France, revealing the first growth in 33 months, the country is still well away from meeting deficit targets, European officials said.

President Francois Hollande, who announced a change of government yesterday, has hinted that France would look for the EU Commission to judge its public accounts favourably, with a deficit of 4.3pc last year overshooting a target of 4.1pc.

However, the head of the Eurogroup of finance ministers, Jeroen Dijsselbloem, said France is "well aware of its commitments".

"It's been given two years and there is obviously work to be done," he said. "I will fully agree with the president of France, it is in the interest of Europe to have a strong France. (But) France has to deliver on its commitments under the growth and stability pact

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