Eurozone PMI Drops to 14-Month Low In March

Flash Eurozone PMI composite output index dropped to 55.3 in March from 57.1 in February, IHS Markit press release pointed out. As a result, the reading has hit a 14-month low in the month.

Similarly, Flash Eurozone Services PMI Activity index and manufacturing PMI output index dropped to 55.0 and 56.1 respectively. In February, the index reading was 56.2 and 59.6 respectively. The two indexes have hit 5-month and 14-month lows respectively.

In the same way, manufacturing PMI index has reached an eight-month low of 56.6 in March from 58.6 in the previous month as the business activity grew at a slowest pace.

The release pointed out that the flash data were based on about 85 percent of normal replies received every month.

The statement pointed out, “Output growth moderated in both manufacturing and services, the latter seeing business activity grow at the slowest rate for five months while factory output increased at the weakest pace since January 2017.”

Both sectors have witnessed waning of fresh order inflows as the export of goods indicated the smallest growth after November 2016. On the whole, inflows of fresh orders indicated the smallest monthly growth recorded in the last 14-month period.

There was also slow growth in employment that reached a six-month low in March. Still, the survey recorded it as one of the biggest monthly expansion witnessed in the last 17 years.

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