Euro Zone Growth Stalls as Middle East War Fuels Inflation
Euro zone growth hit a 10-month low in March as the Middle East war raised costs. New orders fell and business confidence hit its lowest in nearly a year.
The euro zone private sector experienced a significant slowdown in March as the ongoing conflict in the Middle East drove input costs to their highest levels in over three years. According to the latest survey data from S&P Global Inc., the flash composite Purchasing Managers Index (PMI) retreated to 50.5 from February's 51.9. This marks a 10-month low for the region, falling short of economist expectations for a more moderate decline.
While the index has remained above the 50.0 threshold for 15 consecutive months, indicating continued expansion, the pace of growth has nearly stalled. The downturn was largely driven by a contraction in new orders, which fell for the first time in eight months due to weakening demand in the services sector. Manufacturing orders continued to expand, though the output reading for that sector dipped slightly to 51.7.
