FX.co ★ Eurozone Growth Slows in March as War and Inflation Bite

The S&P Global Eurozone Composite PMI for March 2026 was revised slightly higher to 50.7 (from a flash estimate of 50.5), but remained below February’s 51.9, indicating the weakest pace of private-sector expansion since June 2025. The loss of momentum reflected a combination of surging energy prices, supply chain disruptions, financial market volatility, and deteriorating demand, all intensified by the war in the Middle East. Service sector activity broadly stagnated, while manufacturing output was more resilient. However, new orders declined, with export demand softening further, and backlogs of work contracted at their slowest rate since October 2025. Employment reductions accelerated to a 13-month high as firms came under increasing pressure. On the inflation side, input costs rose at their fastest rate in three years, and output price inflation climbed to its highest level since February 2024. At the same time, business confidence fell to its lowest reading in nearly a year.