Eurozone PMI Services Business Activity Index was finalized at 54.9 in March, revised down from 55.0. That compares to February reading at 56.2. Final PMI Eurozone Composite index wars revised down to 55.2, from 55.3. February’s reading was at 57.1.
Quote from there lease by Chris Williamson, Chief Business Economist at IHS
Markit:
- “The eurozone economy came off the boil in March, though continued to run hot. Although the final PMI numbers showed the weakest rise in business activity since the start of last year, adding to signs that the growth spurt has peaked, the surveys are still indicative of the economy growing at an impressive 0.6% quarterly rate in March, down from a clearly unsustainably rapid 0.8-0.9% rate around the start of the year.
- “Some pull-back from the elevated level of the PMI at the start of the year was always highly likely, and it’s important to note that the slowdown generally represents a reduction in the number of companies reporting month-on-month improvements in business activity, as opposed to a rise in the number of companies reporting a deterioration in business conditions.
- “Some of the loss in growth momentum also appears to have been the result of temporary factors, such as bad weather and short-term capacity constraints, notably shortages of supplies and labour. Some reversal of these impediments should therefore hopefully help boost growth in April.
- “Gauging the true extent of any slowdown is consequently difficult due to the disruptions to business from bad weather in recent months. April’s PMI data will therefore be particularly important in ascertaining true underlying growth momentum and in providing a steer on the likely timing of any ECB policy changes.”
