Investing.com - Euro zone private sector activity slowed to its weakest rate in more than a year in March, according to survey data released on Thursday.
Output growth moderated in both manufacturing and services, the latter seeing business activity grow at the slowest rate for five months while factory output increased at the weakest pace since January 2017.
The preliminary reading of the Markit services purchasing managers’ index came in at a five month low of 55.0 this month from 56.2 in February.
Economists had forecast a reading of 56.0.
The manufacturing PMI dropped to a 14-month low of 56.6, compared to expectations for 58.1 and from 58.6 a month earlier.
The composite output index, which measures the combined output of both the manufacturing and service sectors declined to a 14-month low of 55.3 from 57.1, against expectations for 56.7.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
“While the first quarter average PMI reading remains relatively robust, indicative of GDP rising by 0.7-0.8%, the loss of momentum since the buoyant start to the year has been quite dramatic," said Chris Williamson, chief business economist at survey compiler Markit.
“The data therefore suggest that eurozone growth peaked around the turn of the year and the region is settling into a slower, but still robust pace of expansion."