Eurozone Preliminary Manufacturing PMI drops to 47.1 in March vs. 49.0 expected

• Eurozone Manufacturing PMI arrives at 47.1 in March vs. 49.0 expected.
• Bloc’s Services PMI climbs to 55.6 in March vs. 52.5 expected.
• EUR/USD holds lower ground near 1.0775 on the mixed Eurozone PMIs.

The Eurozone manufacturing sector contraction deepened in March, the latest manufacturing activity survey from S&P Global research showed on Friday.

The Eurozone Manufacturing Purchasing Managers Index (PMI) arrived at 47.1 in March vs. 49.0 expected and 48.5 previous. The index reached a four-month low.

The bloc’s Services PMI stood at 55.6 in March vs. 52.5 estimates and February’s 52.7, hitting a 10-month high.

The S&P Global Eurozone PMI Composite jumped to 54.1 in March vs. 51.9 estimated and 52.0 last. The measure recorded a new 10-month high.

Comments from Chris Williamson, Chief Business Economist at S&P Global

“The eurozone economy is showing fresh signs of life as we enter spring, with business activity growing at its fastest rate for ten months in March.”

“The survey is consistent with GDP growth of 0.3% in the first quarter, accelerating to an equivalent rate of 0.5% in March alone.”

FX implications

EUR/USD remains pressured near 1.0775 following the release of the mixed Eurozone PMIs. The spot is losing 0.50% on the day.