Eurozone business activity cools slightly

|By:, SA News Editor

Eurozone flash manufacturing PMI has slipped to 53 in March from 53.2 in February and missed consensus that was also 53.2.

Services declined to 52.4 from 52.6 and vs 52.6.

Composite output fell to 53.2 from 53.3 and vs 52.6.

Manufacturing output edged up to 55.4 from 55.3.

The eurozone enjoyed its best quarter for business activity since Q2 2011, says Markit, with the PMI survey signalling a 0.5% increase in Q1 GDP after growth of 0.3% in Q4.

However, deflation remains a concern, Markit adds, especially in the periphery. With prices falling again in March, the argument for further stimulus remains, "especially if the rate of growth of activity cools again in April."

The euro is flat at $1.3788. (PR)

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