Eurozone Economic Growth Weakens, Business Confidence Drops to 17-Month Low

Source: Markit Economics

The eurozone economy continued to expand in March, albeit at a slower pace than February’s five-month high, driven mainly by the easing of COVID-19 restrictions. EZU is down 0.89%, and VGK down 0.43% premarket.

• The Final Eurozone Composite Output Index stood at 54.9, lower than the 55.5 recorded in February.
• Growth was driven by the service sector, with the indicator up to a four-month high of 55.6 from 55.5 in February. 
• Manufacturing inched up, but growth fell to the weakest in 21 months of expansion. This is on the back of the easing of COVID-19 restrictions, bringing activity levels up.
• Output increased as demand conditions improved, indicating continued growth in new business.
• New export orders declined for the first time since November 2020, with the ongoing conflict between Russia and Ukraine hitting momentum.
• Business confidence slipped to a 17-month low, also due to escalating geopolitical tensions and inflationary concerns.