Purchasing managers index data continue to paint the picture of a strong manufacturing sector. The combination of stocks of finished products running low and strong production expectations indicate manufacturing may expand further in the short term. The service sector shows an increase in activity in the UK, which surprises on the upside. It is likely to improve further, in light of the plan announced by the government to lift restrictions, while the slow vaccination campaign in the EU puts service sector recovery at risk for Q2. Inflation increased in 2021 in the Euro Area, but mostly because of methodological issues.