Eurozone Composite PMI weaker than expected

Markit’s final Eurozone composite output index came in at 53.1 in March, below the flash estimate and consensus of 53.7, but a touch higher than February’s reading of 53.

The downward revision of the index between the flash estimate and final reading was mainly driven by France and Italy, which combined explained 0.5 points out of the 0.6 point downshift.

Meanwhile, the final Eurozone services business activity index printed at 53.1, down from the flash estimate of 54 and below February’s 53.3 reading.

Chris Williamson, chief economist at Markit, said: “The eurozone economy failed to show any significant gain in momentum in March. With the PMI barely rising from February’s 13-month low, the region looks to have grown by just 0.3% again in the first quarter.

“Sluggish growth is the result of lacklustre demand, accompanied by falling prices as firms compete at the expense of profit margins. Not surprisingly, hiring is coming under increased pressure as firms struggle to contain costs.”

Pantheon Macroeconomics said: “Economic activity in the private sector was overall resilient last month, but weakness in services amid persistently sluggish manufacturing is a worry.”