Eurozone PMI Slump Signals Rising Risks of Q2 GDP Contraction

Final PMI data for the Eurozone revealed a significant slowdown in economic activity during March, hitting multi-month lows. The Services PMI fell to 50.2 from 51.9 in February, marking its lowest level in 10 months. Similarly, the Composite PMI slipped to 50.7, a nine-month low that underscores the mounting pressure on the region's economy. Analysts warn that these figures signal heightened risks of a GDP contraction in the second quarter due to the 'war shock' and resulting energy price volatility. This economic cooling is expected to complicate the European Central Bank's (ECB) policy path as growth momentum fades. Consequently, the bearish outlook is likely to weigh on the Euro and major European indices like the DAX.