Eurozone Business Activity Hits 7-Month High in March

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

Sector-Specific Performances Show Varied Trends

While the Flash Services PMI Business Activity Index slightly dipped to 50.4, a four-month low, the Flash Eurozone Manufacturing PMI reached a 26-month peak at 48.7, signaling a mixed but overall positive economic landscape.

ECB's Monetary Policy in Focus Amid Price Developments

"The services sector's price trends, 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 manufacturing sector's moderate price increases, aided by falling energy costs, but cautioned about potential risks such as U.S. retaliation tariffs.