FX.co ★ Eurozone Business Activity Posts Modest Growth in March

The HCOB Eurozone Composite PMI increased slightly to 50.4 in March, up from 50.2 in February, although it fell short of market predictions of 50.8, according to preliminary estimates. This marks the third consecutive month of modest business activity growth across the Eurozone, with the rate of increase being the fastest since last August. Notably, manufacturing output resumed expansion for the first time in two years, achieving its most significant rise since May 2022. In contrast, the growth in the service sector slowed to a four-month low. New orders continued to decline, with employment showing stability after declining for seven months. Additionally, backlogs of work decreased for the 24th consecutive month. On the pricing front, input cost inflation has eased to its lowest point since November, while selling price inflation fell to its lowest this year. Lastly, business confidence weakened for the second consecutive month, reaching its lowest point since November.