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2026-04-08 11:24:36
[Survey Shows Significant Slowdown in Eurozone Economic Activity, Increased Risk of Stagflation] Data released by Standard & Poor's Global on March 7th showed that private sector economic activity in the Eurozone slowed significantly in March, impacted by factors such as rising energy costs and supply chain disruptions caused by the Middle East conflict. The data showed that the final reading of the Eurozone's composite Purchasing Managers' Index (PMI) for March fell to 50.7 from 51.9 in February, the lowest level in nine months. By sector, the final reading of the Eurozone's services PMI for March declined to 50.2 from 51.9 in February, the lowest level in ten months. Chris Williamson, chief business economist at S&P Global Markets Intelligence, believes that the March PMI data indicates that the Middle East conflict has severely impacted the Eurozone economy. He said that factors such as soaring energy prices, supply chain disruptions, financial market turmoil, and a renewed decline in demand have wiped out the growth signs that appeared in the Eurozone at the beginning of the year, and rising prices have raised concerns about stagflation or even a worse situation in the short term. Williamson said that unless the Middle East conflict is resolved quickly, the Eurozone economy may face the risk of contraction in the second quarter of this year. Even if the conflict ends quickly, the destructive impact of the fighting on the energy market could last for months. (Xinhua)
