- Eurozone final services PMI 51.5 vs 51.1 expected
- Eurozone final composite PMI 50.3 vs 49.9 expected
Comments on the data from S&P:
“Finally some good news again. The service sector in the eurozone is gradually finding its footing, with activity stabilizing in February and showing signs of moderate growth in March. It's particularly encouraging to note that new business has resumed growth after an eight-month dry spell. This favourable trend is expected to persist, fuelled by wage growth outpacing inflation, thus bolstering the purchasing power of households. Consequently, individuals are more inclined to dine out, travel, and spend their money on other services. However, a full-fledged boom is not on the horizon.”
“Service providers have not stopped hiring more staff despite the temporary weakness of the economy. Over the past two months, the increase in employment has been notably robust, signalling a high degree of optimism within the sector. In fact, business expectations have surged once again, rising to the highest level in over two years to above the long-term average.”
“Service providers are still in a position to pass on at least some of the rise in input costs to customers in the form of higher prices. In March, however, the pace of inflation slowed slightly both in terms of costs and sales prices. This development is likely to be welcomed by the European Central Bank. Nonetheless, it's premature to discern a clear trend from this data, and as such, we are maintaining our forecast that interest rates will not be cut in April but rather in June.”
