Eurozone Business Activity on the Rise

The Flash Eurozone Composite PMI Output Index, a key indicator of both services and manufacturing business activity, reached 50.4 in March. This marks a slight increase from February's 50.2 and represents a 7-month high, as per a preliminary report from S&P Global and Hamburg Commercial Bank (HCOB).

Sector-Specific Trends

While the services sector saw a slight dip, with the Flash Services PMI Business Activity Index falling to 50.4 from February's 50.6, manufacturing showed signs of strength. The Flash Eurozone Manufacturing PMI climbed to a 26-month high of 48.7, signaling gradual recovery in this sector.

Expert Insights

"The services sector's price developments, closely monitored by the ECB, are likely to please the more dovish members," noted HCOB Chief Economist Cyrus de la Rubia. He also highlighted the moderate price increases in manufacturing, aided by lower energy costs, but cautioned about potential risks such as US retaliation tariffs.