Eurozone Business Output Slips to Two-Month Low

Source: Markit Economics

The eurozone business output slowed to a two-month low in March, dragged by the ongoing conflict between Russia and Ukraine. EZU and VGK are both down 0.02% premarket.

• The headline S&P Global Eurozone PMI fell to 54.5 from 55.5, indicating a loss of economic momentum from the five-month high in the previous month.
• Firms recorded resurgent demand as the economy reopened after the COVID-19 pandemic, but this was offset by the Russian invasion of Ukraine.
• Manufacturing led the growth but fell to its lowest level since October 2021 due to the decline in new orders placed with eurozone factories.
• Slower growth was also seen in business activity and new orders in the service sector, with a decline in service sector exports.
• The invasion of Ukraine also caused higher costs, worsening the supply and demand gap and driving energy prices even higher.
• The services index fell to a two-month low, manufacturing output to a five-month low, and manufacturing to a 14-month low.