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France’s HCOB Manufacturing PMI rose to 48.9 in March, surpassing expectations of 46.2 and improving from 45.8 in February, though still below the 50.0 expansion threshold. The Services PMI also edged up to 46.6 from 45.3, while the Composite PMI climbed to 47.0 from 45.1, indicating a slower pace of economic contraction.

Eurozone consumer confidence fell to -14.5 in March, worse than the expected -13.0 and slightly down from -13.6 in February. The decline reflects growing caution among consumers amid economic uncertainties.

The Swiss National Bank (SNB) cut its key interest rate by 25 basis points to 0.25% in its Q1 decision, meeting expectations. This marks a shift from the previous 0.50% rate, as policymakers respond to easing inflation and economic concerns. The move positions Switzerland among the first major economies to begin monetary easing in 2025.

The Core Consumer Price Index (CPI) in the Eurozone rose 0.5% MoM in February, slightly below the expected 0.6% but rebounding from -0.9% in the previous month. On a yearly basis, core inflation held steady at 2.6% YoY, matching forecasts but slightly lower than January’s 2.7%.

Meanwhile, headline CPI increased 0.4% MoM, falling short of expectations of 0.5%, though still a notable improvement from -0.3% in January. On an annual basis, inflation eased to 2.3% YoY, down from 2.5% previously.

The data suggests a gradual cooling in price pressures, reinforcing expectations that the European Central Bank (ECB) could move toward monetary easing later in the year, depending on economic conditions and wage growth.

The ECB Governing Council today decided to lower the three key ECB interest rates by 25 basis points. Accordingly, the interest rates on the deposit facility, the main refinancing operations and the marginal lending facility will be decreased to 2.50%, 2.65% and 2.90% respectively, with effect from 12 March 2025.

• Spain: The HCOB Spain Services PMI rose to 56.2, up from the previous 54.9 and exceeding the expected 55.4, signaling strong expansion.
• Italy: The HCOB Italy Services PMI increased to 53.0, surpassing both the expected 50.9 and the previous 50.4, indicating solid growth.
• France: The HCOB France Services PMI remained in contraction territory at 45.3, slightly improving from the previous 48.2 but falling short of the expected 44.5.
• Germany: The HCOB Germany Services PMI fell to 51.1, down from the previous 52.5 and below the expected 52.2, showing slower growth.
• Eurozone Composite PMI: Held steady at 50.2, matching both the previous and expected figures, indicating stagnation in overall economic activity.
• Eurozone Services PMI: Declined to 50.6, down from the previous 51.3 and missing the expected 50.7, reflecting modest growth in the sector.

The Eurozone unemployment rate remained unchanged at 6.2% in January, slightly better than the expected 6.3%, indicating a stable labor market despite economic uncertainties.

Spain's Manufacturing PMI declined to 49.7 (prev. 50.9, exp. 51.3), slipping below expansion. Switzerland improved to 49.6 (prev. 47.5, exp. 48.3), while Italy edged up to 47.4 (prev. 46.3, exp. 46.6). France remained weak at 45.8 (prev. 45.0, exp. 45.5), Germany rose slightly to 46.5 (prev. 45.0, exp. 46.1), and the Eurozone PMI climbed to 47.6 (prev. 46.6, exp. 47.3), signaling ongoing contraction but slight improvement.

Germany's consumer price index (CPI) rose by 2.3% year-over-year (YoY) in February, maintaining the same pace as expected and the previous month. On a monthly basis, CPI increased by 0.4%, rebounding from a -0.2% decline in January, suggesting a pickup in price pressures.

The harmonized index of consumer prices (HICP), used for EU-wide comparisons, increased by 2.8% YoY, slightly above the expected 2.7%, and rose 0.6% MoM, marking a strong acceleration from January's decline.

These figures indicate stable inflationary trends, with price pressures showing resilience amid economic uncertainty.

Germany's unemployment rate remained steady at 6.2% in February, in line with expectations. The number of unemployed people increased by 5K, significantly lower than the 14K rise in January, suggesting some stabilization in the labor market. Seasonally adjusted unemployment stood at 2.886M, while the non-seasonally adjusted figure reached 2.989M, reflecting typical seasonal patterns. The data indicates a still-challenging job market but with signs of easing pressure.

France's GDP contracted by 0.1% QoQ in Q4 2024, in line with expectations and marking a slowdown from the 0.4% growth in the previous quarter. On an annual basis, GDP grew by 0.6% YoY, slightly below the forecasted 0.7% and significantly lower than the 1.2% growth recorded in Q3. The data suggests weakening economic momentum amid softer domestic demand and external headwinds.

France's Consumer Price Index (CPI) rose 0.2% MoM in February, below the expected 0.5%, matching the previous month's increase. On an annual basis, inflation slowed to 0.8% YoY, falling short of the forecasted 1.0% and marking a significant drop from 1.7% in January. The decline in inflation reflects easing price pressures in the French economy.