Eurozone Business Activity Set to Stagnate Amid Higher Input Prices -- Market Talk

Dow Jones03-24

1033 GMT - Business activity in the eurozone looks set to stagnate rather than contract, Jack Allen-Reynolds at Capital Economics says in a note. PMI surveys showed higher energy prices hit demand and drove up input costs in March. The composite index fell to 50.5 in the month from 51.9 in February. The drop was mostly driven by the services sector, while output in the manufacturing sector was little changed, Allen-Reynolds says. Still, worse could be to come. "Potential supply-chain disruption had prompted some companies to bring purchases forward... That boost won't last forever," he says. Meanwhile, output expectations hit a 10-month low. "We suspect that the economy will stagnate rather than contract, but there are clearly risks in both directions." (don.forbes@wsj.com)

(END) Dow Jones Newswires

March 24, 2026 06:33 ET (10:33 GMT)

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