Euro zone private sector growth has nearly halted this month, as revealed by a key survey on Tuesday, underscoring economic impacts from the U.S. and Israeli conflict with Iran. The steep rise in oil prices is contributing to regional inflation and potential economic stagnation, challenging consumer purchasing power and business profits.
The S&P Global flash euro zone Composite Purchasing Managers’ Index dropped to a 10-month low in March, prompted by rising war-induced input costs and severe supply chain disruptions. Chris Williamson of S&P Global Market Intelligence highlighted stagflation concerns as prices soar, intensifying economic pressures.
While interest rates rise in anticipation of the ECB’s inflation measures, indicators suggest subdued euro zone GDP growth, with a heightened risk of economic downturns. New orders fell for the first time in months, and costs are climbing sharply, particularly in manufacturing sectors affected by energy price spikes.
(With inputs from agencies.)
