Euro zone economy stagnates as manufacturing downturn overshadows services growth

Published 05/03/2025, 10:28
© Shutterstock

Investing.com -- The euro zone economy had no significant growth last month, as a weak expansion in the dominant services industry was negated by a continuing decline in manufacturing, according to a survey.

The final composite Purchasing Managers’ Index (PMI) for the bloc, compiled by S&P Global and viewed as a reliable indicator of overall economic health, remained unchanged at January’s 50.2. This figure is only slightly above the 50 mark, which distinguishes growth from contraction.

The PMI for the services sector fell to a three-month low of 50.6 from 51.3. The manufacturing sector’s downturn showed additional signs of easing last month, as indicated by its PMI released on Monday.

The survey also suggested that it might take some time for the currency union to see a significant increase in growth, as overall demand fell at an accelerated rate. The composite new business subindex dropped to 49.0 from 49.3.

Inflationary pressures in the services sector, which the European Central Bank (ECB) monitors closely, remained high. The prices charged rose at the fastest pace in 10 months, with the index increasing to 54.7 from 53.9.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.