Eurozone final services PMI 51.5 vs 51.1 expected | Forexlive

• Eurozone final services PMI 51.5 vs 51.1 expected

• Eurozone final composite PMI 50.3 vs 49.9 expected

Comments on the data from S&P:

“Finally some good news again. The service sector in the
eurozone is gradually finding its footing, with activity stabilizing in
February and showing signs of moderate growth in March. It’s particularly
encouraging to note that new business has resumed growth after an eight-month
dry spell. This favourable trend is expected to persist, fuelled by wage growth
outpacing inflation, thus bolstering the purchasing power of households.
Consequently, individuals are more inclined to dine out, travel, and spend their
money on other services. However, a full-fledged boom is not on the horizon.”

“Service providers have not stopped hiring more staff
despite the temporary weakness of the economy. Over the past two months, the
increase in employment has been notably robust, signalling a high degree of
optimism within the sector. In fact, business expectations have surged once
again, rising to the highest level in over two years to above the long-term
average.”

“Service providers are still in a position to
pass on at least some of the rise in input costs to customers in the form of
higher prices. In March, however, the pace of inflation slowed slightly both in
terms of costs and sales prices. This development is likely to be welcomed by
the European Central Bank. Nonetheless, it’s premature to discern a clear trend
from this data, and as such, we are maintaining our forecast that interest
rates will not be cut in April but rather in June.”