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Europe's economy slowed in March, with manufacturing and services contracting, inflation rising, and stagflation fears growing due to Middle East tensions and supply chain issues.
Germany's manufacturing PMI rose to 51.7 in March, but services and composite PMIs fell, signaling slowing economic growth amid weakening demand and heightened uncertainty from the US-Iran conflict.
The eurozone composite PMI dipped to 50.5, near stagnation, with services hitting a ten-month low and manufacturing output declining.
Supply chain delays worsened, input costs surged to multi-year highs, and future output expectations dropped to their lowest since 2022.
France’s services PMI fell to 48.3, indicating contraction, while manufacturing showed fragile gains amid rising costs and worsening delivery times.
Overall, economic activity across Europe slowed, inflation pressures mounted, and stagflation risks increased due to Middle East tensions and declining business confidence.
La economía de Europa se desaceleró en marzo, con la contracción de la industria manufacturera y los servicios, el aumento de la inflación y los temores de estagflación creciendo debido a las tensiones en Oriente Medio y los problemas de la cadena de suministro.