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- Eurozone PMI falls in March as manufacturing downturn deepens
Eurozone PMI falls in March as manufacturing downturn deepens
Flash Eurozone PMI Composite Output Index at 51.3 (51.9 in February). 2-month low.
Flash Eurozone Services PMI Activity Index at 52.7 (52.8 in February). 2-month low.
Flash Eurozone Manufacturing PMI at 47.6 (49.3 in February). 71-month low.
According to the report from IHS Markit, the eurozone economy lost momentum again in March, expanding only modestly as manufacturers reported their steepest downturn for six years. The service sector showed greater resilience but remained in its worst growth spell since late-2016. Stagnant order books and gloomier future expectations meanwhile led to reduced hiring.
The IHS Markit Eurozone Composite PMI® fell from 51.9 in February to 51.3 in March, according to the preliminary ‘flash’ estimate. The March reading was the third-lowest since November 2014, running only marginally above the recent lows seen in December and January.
New order growth stagnated for a second successive month following a slight decline in January, with backlogs of work dropping for the third time in four months. The reduction in backlogs was the largest since November 2014 and was indicative of excess capacity developing in the economy. Employment growth consequently slowed, down to the joint-weakest since September 2016, as increasing numbers of companies reviewed their payroll requirements in the light of reduced workloads.
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