The S&P Global Eurozone Composite PMI was revised up slightly to 50.7 in March 2026 (from a flash estimate of 50.5), but remained below February’s 51.9, signaling the weakest private-sector expansion since June 2025. The slowdown reflects a mix of soaring energy prices, disrupted supply chains, financial market turbulence, and slumping demand, all exacerbated by the Middle East war. Service sector activity stagnated, while manufacturing output held firm. However, new orders fell, with export demand weakening further, and backlogs of work shrank at the slowest pace since October 2025. Employment cuts accelerated to a 13-month high, as businesses faced mounting pressures. On the inflation front, input costs surged to a three-year peak, and output price inflation hit its highest level since February 2024. Meanwhile, business confidence slumped to its lowest in almost a year.

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