Eurozone Manufacturing Rebounds As Services Services Slow -Key Ecb and Trading Signals Emerge

Services Sector Slows As Input Costs Modrate The Service Sector, While Still in Expansion, Lost Momentum in March. The Flash Eurozone Services Pmi Dipped to 50.4 from 50.6 In February, Reflection Subdored New Business Demand. German Services Activity Underformed Sharply At 50.2 Versus A Forecast of 52.3, Signaling A Weakening Outlook Despite Previous Strengt. France posted a modest Gain to 46.6, Slightly Above Expectations But Still in Contraction. Price Pressures in the Services Sector Eased, With Slower Input Cost Growth – Welcome News for the ECB As It Weights Monetary Policy Decisions.

Inflation Signals and Policy Implications The Slowdown in Price Growth Across Both Manupacting and Services Will Likely Be Seen Favorably by EcB doves. INPUT COST INFLATION IN SERVICES MODERATED, HINTING AT REDUCED WAGE Pressures, While Selling Prices in Manualaned Increated for the FIRST TIME IN SEVEN MONTHS With Inflation Trends Sofension, The Central Bank Mayk Find Room to Reass the Pace of It Rate Strategy, Thought Risks Such As Trade Tensions and Elegated Foods Remain.

Market Forecast: Bullish Manufacturing Outlook, Cautious on Services The March Pmi Data Support A CAUTYUSLISH OUTLOOK for European ManUfActuring as Output Growth and Improving Order Trends Gain Traction. However, The Services Sector Presents Downside Risks, Particularly in Germany. Traders Should Monitor Next MONTH’s Final Pmi Releases for Confirmation of Sustaned Recovery in Manufacturing and Potential EcB Policy Recalibrations.

More Information in Our Economic Calendar.