Eurozone PMI manufacturing dropped to 57.0, war having immediate and material impact

Eurozone PMI Manufacturing dropped from 58.2 to 57.0 in March, above expectation of 55.9. But that’s still a 15-month low. PMI Services dropped from 55.5 to 54.8, above expectation of 54.3. PMI Composite dropped from 55.5 to 54.5.

Chris Williamson, Chief Business Economic at S&P Global said: “The survey data underscore how the Russia-Ukraine war is having an immediate and material impact on the eurozone economy, and highlights the risk of the eurozone falling into decline in the second quarter…

“The war has aggravated existing pandemic-related price pressures and supply chain constraints, leading to record inflation rates for firms’ costs and selling prices, which will inevitably fee through to higher consumer prices in the months ahead…

“Businesses are themselves bracing for weaker economic growth, with expectations of future output collapsing in march as firms growth increasingly concerned about the impact of the war”.