S&P Global announced that the Purchasing Managers’ Index (PMI) for the eurozone’s manufacturing and services sectors fell to 54.5 in March from 55.5 in February.
However, the PMI was above analysts’ forecasts of 53.9.
The PMI index remains above the 50 mark, indicating that the eurozone corporate sector continues to expand. This is due to the fact that many countries have reopened their economies after being put under lockdown to contain the spread of COVID-19.
The PMI was put under pressure by geopolitical events such as the invasion of Ukraine by Russian troops. As a result, business confidence fell to its lowest level since October 2020, posing a risk that the euro area economy will weaken in the second quarter.
The preliminary PMI for the service sector fell to 54.8 and the manufacturer PMI to 57.