Eurozone composite PMI revised up but still at nine-month low

7th Apr 2026 09:11

(Sharecast News) - Private-sector activity growth across the eurozone in March was revised slightly higher, according to final estimates from S&P Global on Tuesday, but still showed the weakest rate of expansion in nine months as cost pressures intensified.

The S&P Global eurozone composite purchasing managers' index, which is a weighted average of the manufacturing PMI output index and the services PMI, was revised to 50.7, up from the preliminary reading of 50.5 released two weeks ago.

However, this was still down from the 51.9 rate and represented the lowest rate of growth - indicated by any figure above 50 - since June 2024.

The deceleration was mainly as a result of a slowdown in the services sector - which has largely been the driver of growth over the past 12 months - with new orders falling for the first time since last July as export sales fell sharply.

Meanwhile, input cost pressures picked up across the board, which S&P Global said "intensified sharply" compared with the month before as the rate of inflation jumped to its highest since February 2023.

The services PMI business activity index fell to a 10-month low of 50.2 in March from 51.9 in February, while the manufacturing PMI rose to 51.6 from 50.8.

"March's PMI indicates that the eurozone economy has already been hit hard by the war in the Middle East," said Chris Williamson, chief business economist at S&P Global Market Intelligence.

"The encouraging signs of growth seen earlier in the year have been eradicated thanks to surging energy prices, choked supply chains, financial market volatility and a renewed downturn in demand. The accompanying surge in prices raises the unwelcome spectre of stagflation, or worse, in the near-term."