The latest UK PMI business confidence data recorded a decline in the manufacturing index to a 13-month low of 55.5 for March from 58.0 previously and well below forecasts of 57.0.The services-sector index, however, strengthened to a 9-month high of 61.0 from 60.5 previously and comfortably above forecasts of 58.0. There was a stronger rate of growth in new orders and the labour market remained strong while capacity constraints eased slightly. Cost pressures remained very strong and average prices increased at the fastest rate on record. Overall business confidence declined by the largest amount since the pandemic started with a decline to 17-month lows.
Key Data
The Euro-zone PMI manufacturing index retreated to a 14-month low of 57.0 for March from 58.0 the previous month, but above consensus forecasts of 56.0 while the services index was also above expectations despite a retreat to a 2-mnth low of 54.8 from 55.5 in February. Costs rose sharply with the input prices index registering the strongest increase on record by a substantial margin while the rate of inflation for output prices also reached a record high. The data provided an element of relief surrounding the Euro-zone economy and the Euro managed to secure further support just above weekly lows.
Key Data
The US PMI manufacturing index strengthened to a 6-month high of 58.5 for March from 57.3 previously and above expectations of 56.3 while the services sector also beat expectations by a substantial margin with a gain to an 8-month high of 58.9 from 56.5. There was a stronger rate of increase in new orders for the month while there was further strong upward pressure on prices with services costs increasing at close to the fastest rate on record. The data indicated strength in the US economy, but the dollar was unable to secure support from the release.
Key Data
2pm- Fed’s Williams speech