Eurozone Business Activity Hits 7-Month High

The Flash Eurozone Composite PMI Output Index, a key indicator of services and manufacturing business activity, climbed to 50.4 in March, up from February's 50.2, marking a seven-month peak, as per a preliminary report by S&P Global and Hamburg Commercial Bank (HCOB).

Services Sector Shows Slight Dip

Contrasting the overall positive trend, the Flash Services PMI Business Activity Index slightly decreased to 50.4 in March, down by 0.2 points from February, reaching a four-month low.

Manufacturing Sector Reaches 26-Month High

In a brighter note for the manufacturing sector, the Flash Eurozone Manufacturing PMI surged to 48.7, its highest in 26 months.

Expert Insights on Economic Trends

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