Services PMIs See Stronger Demand, Expectations Slump

SPAIN MAR SERVICES PMI 53.4 (FORCST 54.3); FEB 56.6

• Spanish services PMI fell by 3.2 points in the March print, a further 0.9 points below the forecasted decline (however substantially above the 50-point breakeven mark).
• Domestic transport strikes and the war in Ukraine saw confidence fall.

ITALY MAR SERVICES PMI 52.1 (FORCST 51.5); FEB 52.8

• Italian services saw a smaller decline in March, stepping down 0.7 points in March.
• Costs levied by firms rose at near-record high and business confidence slipped to a 16-month low.

FRANCE FINAL MAR SERVICES PMI 57.4 (UNCH FLASH); FEB 55.5

• France services PMI was confirmed at a four-month high, with activity growth continuing to expand on the back of easing Covid restrictions.

GERMANY FINAL MAR SERVICES PMI 56.1r (FLASH 55.0); FEB 55.8

• German services saw a surprise upward revision of +1.1 points on the flash estimate as business activity reached a 6-month high.
• Reduced Covid-restrictions coupled with strong job growth enabled this boost, however, business expectations dropped to a 17-month low.

EUROZONE FINAL MAR SERVICES PMI 55.6 (FLASH 54.8); FEB 55.5

• Across the eurozone, input costs and output prices reached new record highs. The surge in uncertainty surrounding the Ukraine invasions saw new exports fall.
• March saw service growth was boosted across the region as pandemic restrictions were lifted.
• Energy cost inflation has been worsened by the Ukraine war, which alongside persistent supply-chain disruptions continue to drag on confidence and growth.
• Chief Business Economist at S&P Global Chris Williamson commented "It certainly seems likely however that the solid expansion seen in March will prove hard to sustain and there is clearly a greater risk of the economy stalling or contracting during the second quarter"