Eurozone PMI Services was finalized at 55.6 in March, up from February 55.5, hitting a 4-month high. However, PMI Composite was finalized at 54.9, down from prior month’s 55.5.
Looking at some member states, Ireland PMI composite rose to 5-month high at 61.0. France rose to 8-month high at 56.3. But Germany dropped to 55.1. Spain dropped to 53.1. Italy dropped to 52.1. PMI composite of Germany, Spain and Italy were all at 2-month low.
Chris Williamson, Chief Business Economist at S&P Global said: “The further reopening of the eurozone economy amid the fading Omicron wave has provided a welcome tailwind to business activity in March… However, the resilience of the economy will be tested in the coming months by headwinds which include a further spike in energy costs and other commodity prices due to Russia’s invasion of Ukraine, as well as worsening supply chain issues arising from the war and a marked deterioration in business optimism regarding prospects for the year ahead…
“The outlook for growth has therefore deteriorated at a time when the inflation outlook has worsened. A recession is by no means assured, as the extent to which the economy could suffer in the coming months will depend on the duration of the war and any changes to both fiscal and monetary policy. It certainly seems likely however that the solid expansion seen in March will prove hard to sustain and there is clearly a greater risk of the economy stalling or contracting during the second quarter.”
