Service sector

Services sector and composite PMIs offer support in EUR

The Eurozone economic calendar was busy this morning. The Member State and Eurozone services sector and composite PMIs were in focus.

Member States

For Spain, the services PMI fell from 56.6 to 53.4 against 55.2 expected.

In Italy, service sector activity grew more slowly, with the PMI falling from 52.8 to 52.1. Economists had forecast a drop to 51.5.

For France, the services PMI fell from 55.5 to 57.4, which is in line with preliminary figures.

Germany’s services PMI rose to 56.1 from 55.8 from 55.0 at the start.

The euro zone

For the euro zone, the services PMI rose from 55.5 to 55.6, against a forecast of 54.8.

As a result, the composite PMI fell from 55.5 to a two-month low of 54.9, from 54.5 at the start.

According to the March survey,

  • At the composite level, service-sector activity boosted growth in March, as output rose slightly from February.
  • The recovery was supported by an easing of containment measures related to COVID-19, resulting in higher levels of activity to support increased demand for goods and services.
  • New export orders fell for the first time since November 2020, with the Russian invasion of Ukraine hitting the manufacturing sector in particular.
  • Inflationary pressures and supply chain issues resurfaced, adding to private sector woes.
  • As a result, business confidence weakened in the services and manufacturing sectors.
  • Production expectations fell to their lowest level in 17 months.

By country

  • Ireland ranked first, with the composite PMI hitting a 5-month high of 61.0.
  • France came second, with an 8-month high of 56.3, followed by Germany, Spain and Italy, each seeing their composites at their 2-month low.

Market Impact

Prior to today’s data, the Euro fell to a pre-statistic and current low of $1.09623 before rising to a pre-statistic high of $1.09839.

The euro found support against today’s PMI release, hitting a daily high of $1.09887 before pulling back.

At the time of writing, the EUR was up 0.10% at $1.09833.


US Non-Manufacturing ISM PMI Numbers While the numbers will be influential, markets are also waiting for news of new EU sanctions against Russia, which will attract a lot of attention.