Eurozone PMI manfucturing dropped to 56.6 in March , down from 58.6, below expectation of 58.1. That’s lowest in 8 months.
Eurozone PMI services dropped to 55.0, down from 56.2, below expectation of 56.0. That’st lowest in 5 months.
Eurozone PMI composite dropped to 55.3 down from 57.1, loweset in 14 month.
Here is ther release Eurozone expansion slows to weakest since start of 2017
Quote from Makit Chief Business Economist Chris Williamson:
“While the first quarter average PMI reading remains relatively robust, indicative of GDP rising by 0.7-0.8%, the loss of momentum since the buoyant start to the year has been quite dramatic.
“At least some of the slowing may be ascribed to bad weather in some northern regions and, perhaps more importantly, ‘growing pains’ resulting from the strength of the recent growth spurt. Supply chain delays and raw material shortages were often reported to have stymied production in manufacturing (delays in German supply chains are currently more widespread than at any time in the survey’s 22-year history), and both manufacturing and services sectors also saw activity being curtailed by growing incidences of skill shortages. Backlogs of work continue to rise as a result of these growth constraints.
“However, other factors are clearly at play. The fact that export order book growth has more than halved since the end of last year suggests the stronger euro is taking an increasing toll on export performance. Survey responses also highlighted how political uncertainty also appears to have intensified, dampening demand.
“The data therefore suggest that eurozone growth peaked around the turn of the year and the region is settling into a slower, but still robust pace of expansion. Price pressures have meanwhile also eased slightly, in part linked to cheaper imports arising from the euro’s recent strength, but remain elevated.”
