Eurozone Business Activity Hits 7-Month High

According to a preliminary report by S&P Global and Hamburg Commercial Bank (HCOB), the Flash Eurozone Composite PMI Output Index rose to 50.4 in March, up from February's 50.2, marking a 7-month high. This index is a key indicator of the health of the services and manufacturing sectors in the region.

Services Sector Shows Slight Dip, Manufacturing on the Rise

The Flash Services PMI Business Activity Index slightly decreased to 50.4 in March, a 0.2 point drop from February, reaching a 4-month low. Conversely, the Flash Eurozone Manufacturing PMI reached a 26-month high of 48.7, indicating a robust recovery in the manufacturing sector.

ECB's Monetary Policy in Focus

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