FGM - Eurozone Services PMI rises to 10-month high to 55.6 in March

2023-03-24 05:21:29 ET

• The S&P Global Eurozone Services PMI rose to 55.6 in March 2023, from 52.7 in February, beating market expectations of 52.5, a preliminary estimate showed.
• Business activity rose for a third straight month to register the strongest expansion since last May.
• A key development was the further revival of growth in financial services, with a notable turnaround in real estate activity compared to late last year, despite recent concerns regarding banking sector stability and higher interest rates.
• Consumer services activity also continued to revive from the downturn seen late last year, notably in respect to travel and tourism.
• Growth was also recorded in industrial services, IT and healthcare.
• The Manufacturing PMI In the Euro Area decreased to 47.10 points in March from 48.50 points in February of 2023.
• The seasonally adjusted S&P Global Eurozone PMI  Composite Output Index, based on approximately 85% of usual survey responses, rose for a fifth consecutive month in March, up from 52.0 in February to a ten-month high of 54.1.
• Commenting on the flash PMI data, Chris Williamson, Chief Business Economist at S&P Global Market Intelligence said: "The eurozone economy is showing fresh signs of life as we enter spring, with business activity growing at its fastest rate for ten months in March. Growth has been buoyed since the lows of late last year as recession fears and energy market worries fade, sector and rising wage costs, will be a concern to policymakers and suggests that more work may be needed in terms of bringing inflation down to target. Growth is also very unbalanced, driven almost solely by the service sector with manufacturing largely stalled and struggling to sustain production in the face of falling demand."
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