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The HCOB Eurozone Services PMI climbed to 51.0 in March from 50.6 in February, slightly above the expected 50.4, indicating a stronger pace of expansion in the services sector. Meanwhile, the Eurozone Composite PMI rose to 50.9, also up from 50.2, marking the highest reading since May 2023—suggesting a modest but steady recovery across manufacturing and services.

Germany's HCOB Services PMI rose to 50.9 in March, up from 50.2 estimates, but slightly below the previous 51.1, signaling continued modest expansion in the services sector.

France's HCOB Services PMI rose to 47.9 in March, improving from 46.6 estimates and surpassing the previous month's 45.3, indicating a modest recovery in the service sector.

Italy's HCOB Services PMI declined to 52.0 in March, compared to 52.6 expectations and 53.0 in February, signaling a slight deceleration in service sector growth.

Spain's HCOB Services PMI dropped to 54.7 in March, down from 55.6 in February and 56.2 expectations, indicating a slower expansion in the services sector.

Switzerland's CPI (MoM) remained flat at 0.0% in March, below the expected 0.1% and sharply down from 0.6% in the previous month, indicating stable consumer prices.

The ECB cut its key rate by 25 basis points and signaled more easing if uncertainties persist.

Growth projections have been revised lower, with short-term inflation staying sticky, but relief expected by 2026.

President Lagarde urges caution in the face of a U.S.-EU tariff conflict that could cut 0.5% off the Eurozone’s GDP.

Mixed views from officials:

Lagarde: Tariffs could have a global impact based on scope and negotiations.

Isabel Schnabel: U.S. policies have significant implications for Europe.

Robert Holzmann: No need for more cuts now but warns central banks may need unconventional measures if a trade war escalates.

Market volatility is rising—stay tuned for major global impacts.

Eurozone Core CPI (YoY) (Mar) slowed to 2.4% (prev. 2.6%), slightly below expectations (2.5%), while monthly core inflation jumped 1.0% (prev. 0.5%). Headline CPI (YoY) also dropped to 2.2%, with monthly CPI rising to 0.6% (prev. 0.4%).

Meanwhile, the unemployment rate (Feb) remained at 6.1%, better than the expected 6.2%. The data reflects easing inflation but persistent price pressures, keeping the ECB's policy outlook uncertain.

Germany's Consumer Price Index (CPI) for March remained stable at 2.2% YoY, matching expectations but slightly lower than the previous 2.3%. On a monthly basis, CPI rose 0.3%, in line with forecasts but decelerating from 0.4% in February. The Harmonized Index of Consumer Prices (HICP), which is the EU-standardized measure, increased 2.3% YoY, slightly below the expected 2.4% and down from 2.6% previously. HICP MoM climbed 0.4%, lower than the expected 0.5%, signaling a continued disinflation trend. These figures indicate easing inflationary pressures, which could influence the European Central Bank's future monetary policy decisions.

Germany’s Ifo Business Climate Index rose to 86.7 in March, up from 85.3, though slightly below the forecast of 86.8. Business Expectations increased to 87.7, beating February’s 85.6 but missing the expected 87.9. The Current Assessment edged up to 85.7 from 85.0, signaling modest optimism despite economic uncertainties.

The Eurozone’s HCOB Manufacturing PMI rose to 48.7 in March, exceeding expectations of 48.3 and up from 47.6 in February, though still in contraction. The Services PMI dipped to 50.4, below the forecast of 51.2 and slightly down from 50.6, signaling weaker expansion. The Composite PMI edged up to 50.4 from 50.2, indicating sluggish overall growth.

Germany’s HCOB Manufacturing PMI rose to 48.3 in March, beating expectations of 47.1 and up from 46.5 in February, though still in contraction. The Services PMI fell to 50.2, below the forecast of 52.3 and down from 51.1, signaling weaker growth. The Composite PMI edged up to 50.9, slightly improving from 50.4, indicating modest overall expansion.