World News: Euro-Zone Prices Under Pressure
Business activity in the euro zone expanded at an accelerated pace at the start of the second quarter, a closely watched business survey showed. But companies cut the prices they charged customers, indicating that the European Central Bank's worries over low inflation are far from over.</br></br>The ECB is prepared to act on interest rates or other stimulus measures if inflation undershoots the central bank's forecasts, ECB board member Ardo Hansson, who heads Estonia's central bank, said in an interview on Wednesday.</br></br>Data firm Markit's survey of 5,000 manufacturing and services businesses found that activity was on track to expand in April, at the fastest pace since May 2011. The composite Purchasing Managers Index rose to 54.0 from 53.1 in March. A reading above 50 indicates month-to-month expansion in activity.</br></br>The business surveys add to recent evidence that the currency area's return to growth, which started in the second quarter of 2013, is gaining some momentum. A survey released by the European Commission on Tuesday found that consumer confidence is at its highest since October 2007, while recent data releases have pointed to rises in retail sales, industrial production, exports and construction.</br></br>However, the business surveys carried a warning for the ECB, with manufacturers and service providers reporting that they cut their prices in April at the fastest pace since August 2013.