Eurozone Private Sector Expands for Third Consecutive Month Amidst German Manufacturing Rebound and Easing Inflationary Pressures

The Eurozone's private sector expanded for the third consecutive month in March, driven by a rebound in German manufacturing and easing inflationary pressures. The Hamburg Commercial Bank Flash Eurozone Composite PMI rose to 50.4, a seven-month high, indicating growth in both services and manufacturing. Notably, manufacturing output returned to growth for the first time in two years, largely due to a rebound in Germany's manufacturing sector following the announcement of a new fiscal package. Input cost inflation slowed to its lowest since November, potentially giving the European Central Bank room to consider interest rate cuts as early as June. Germany's composite PMI climbed to 50.9, its strongest performance since May 2024, while France's composite PMI, though still in contraction territory, rose to 47.0. The euro edged up 0.2% to 1.0830, and European stocks posted modest gains.