Economic Buzz: Eurozone Economy Maintains Strong Growth Rate In March

5 Apr 2022 , 04:07 PM

The seasonally adjusted S&P Global Eurozone PMI Composite Output Index posted 54.9 in March, a slight decline from 55.5 in February but still indicative of strong growth in business activity across the eurozone. The expansion was driven by the service sector, where output rose at a marginally faster pace than in February. Manufacturing production was also up over the month, although the expansion was the weakest seen over the current 21-month sequence of increases. The S&P Global Eurozone PMI Services Business Activity Index edged up fractionally to 55.6 in March, from 55.5 in February, signalling a strong rate of expansion in service sector output at the end of the first quarter.

Eurozone economy maintained a strong rate of growth in March, easing only slightly from Februarys five-month high as looser COVID-19 restrictions continued to accommodate rising levels of business activity. The main impetus to the expansion was provided by the service sector, where growth edged slightly higher, as manufacturing output rose at a softer pace. New orders also increased at a solid rate in March, although new business from export markets deteriorated as the war in Ukraine reportedly impacted cross-border trade.

Business confidence meanwhile took a significant hit, slumping to a 17-month low as rising geopolitical tensions and inflation weighed on the outlook. Amid surging energy, fuel and commodity prices, input cost inflation accelerated to a survey high in March. To combat margin pressures, prices charged for eurozone goods and services were raised to the quickest extent on record.

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