Eurozone business growth was boosted last month as economies reopened after the Omicron variant of the coronavirus, according to the Purchasing Managers’ Index (PMI) survey.
The survey, however, showed that rising energy costs and Russia’s invasion of Ukraine threaten the recovery.
S&P Global’s final Composite PMI dropped to 54.9 in March from 55.5 in February, but above the preliminary 54.5.
“The reopening of the eurozone economy amid the waning wave of Omicron gave a boost to business activity in March, helping solid expansion after the slowdown seen earlier in the year,” said Chris Williamson, chief economist at S&P Global. .
“However, the economy’s resilience will be tested in the coming months with hurdles including a further rise in energy costs and other commodity prices due to Russia’s invasion of Ukraine.”
The bloc’s service sector PMI advanced to 55.6 from 55.5, beating a preliminary 54.8.
But the growth rate of overall demand has slowed and export orders, which include orders placed between member countries, have slowed as companies raised their prices to offset a record increase in input costs.
Inflation in the currency bloc hit a record 7.5% in March, according to official data last week, and with the PMI for services output prices at 62.6, the highest since the survey began in mid-1998, it must go even further.
Source: CNN Brasil
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