PARIS, April 5 (Reuters) – Key final results from S&P Global’s surveys of European services purchasing managers released on Tuesday:
* EUROZONE – BETTER THAN EXPECTED GROWTH
LONDON – The growth of private sector activity in the euro zone was supported last month by the lifting of measures linked to the COVID-19 pandemic, show the final results of the survey carried out by IHS S&P Global which underlines furthermore that the recovery is threatened by soaring energy costs and the invasion of Ukraine by the Russian army.
The composite index, considered a good indicator of overall economic growth, reached 54.9 in March against 55.5 in February and 54.5 in the first estimate.
The PMI for services rose from 55.6 in February to 55.5 in March, a figure above the preliminary estimate at 54.8.
“The continued recovery as the epidemic wave weakened due to Omicron provided a tailwind to business activity in March, contributing to another solid expansion,” said Chris Williamson, chief economist at S&P Global. .
“However, the strength of the economy will be tested in the coming months by headwinds that include a further spike in the cost of energy and other raw materials due to the invasion of Ukraine by Russia,” he added.
* GERMANY – SURPRISE REBOUND IN SERVICES ACTIVITY
BERLIN – Business activity in Germany’s services sector rose to a six-month high as COVID-19 restrictions eased but war-related uncertainties in Ukraine and the acceleration of the inflation weigh on the outlook.
The final PMI activity index in the services sector rose to 56.1 from 55.8 in February. The preliminary “flash” estimate gave it down to 55.0.
The composite PMI index, which includes manufacturing activity and services, fell from 55.6 in February to 55.1 in March. The first estimate was 54.6.
“With manufacturing output under pressure due to Ukraine, the services sector provided critical support to overall economic activity in March,” said Phil Smith, chief economics officer at S&P Global.
“However, that is really where the good news ends. new orders,” he added.
* FRANCE – GROWTH SHARPED IN MARCH
PARIS – Growth in the services sector in France accelerated in March thanks to the easing of health restrictions, but professional confidence in the outlook has deteriorated due to inflation and the war in Ukraine.
The PMI for the services sector came out at 57.4, as in the “flash” estimate, after 55.5 in February.
The composite PMI rose to 56.3 in March, from 55.5 in February and 56.2 in the first estimate.
“Growth accelerated in March in the French services sector, as the further lifting of health restrictions, notably the abandonment of the vaccination pass, supported activity and stimulated demand,” said Joe Hayes, senior economist at S&P Global.
“The downside risks to the outlook have, however, increased as Russia’s invasion of Ukraine has exacerbated the climate of uncertainty, caused a spike in the price of raw materials, energy and fuel, further disrupting supply chains. Confidence among service providers has fallen to its lowest level in fourteen months,” he added.
* ITALY – WAR IS AFFECTING DEMAND
ROME – Activity in Italian services was dampened in March by the effect of the Ukrainian war on demand, show the final results of the S&P Global survey.
The PMI index calculated by S&P among purchasing managers for the services sector stood at 52.1 last month in the final version against 52.8 in February.
* SPAIN – SLOWDOWN IN SERVICES
MADRID – Growth in activity in Spain’s services sector slowed in March due to uncertainties related to Russia’s invasion of Ukraine, a truck drivers’ strike and rising fuel costs. ‘energy.
In the final version, the sector PMI index fell to 53.4 from 56.6 in February.
“Despite this relatively bleak backdrop – which has hurt overall confidence – companies have still faced capacity challenges, seeking to recruit additional staff whenever possible,” said Paul Smith, an economist at S&P Global.
(Reuters European Bureaus, French version Laetitia Volga, editing by Sophie Louet)