Markit Economics released its preliminary manufacturing purchasing managers' index (PMI) for the Eurozone on Tuesday. Eurozone's preliminary manufacturing PMI rose to 51.4 in March from 51.2 in February. Analysts had expected the index to increase to 51.3.

The increase was driven by a faster growth in output and new orders.

Eurozone's preliminary services PMI increased to 54.0 in March from 53.3 in February. Analysts had expected the index to remain unchanged at 53.3.

The index was driven by a rise in in new business.

"The Eurozone saw renewed signs of life at the start of spring. The March PMI showed a welcome end to the worrying slowdown trend seen in the first two months of the year, putting the region on course for a 0.3% expansion of GDP in the first quarter ", Markit's Chief Economist Chris Williamson said.

He noted that the recent stimulus measures by the European Central Bank (ECB) should help to boost growth further in the second quarter.