Eurozone private sector growth almost stalled this month, a key survey showed on Tuesday, adding to evidence that the bloc is already feeling economic fallout from the U.S. and Israeli war with Iran, with inflation rising and growth slowing.
“The economic hit from higher energy prices could be felt very quickly,” Jack Allen-Reynolds at Capital Economics said. “Based on our working assumptions for energy prices, we suspect that the economy will stagnate rather than contract, but there are clearly risks in both directions.”
Interest rates are rising amid expectations of further European Central Bank rate increases to curb inflation, pushing some mortgage rates higher and denting disposable incomes.
Meanwhile, petrol prices have risen by more than 10% across the EU, while diesel is up over 20%. Even if the war ends relatively soon, prices are unlikely to fall quickly, as some energy infrastructure has been damaged and fuel bottlenecks may take several months to resolve.
The S&P Global flash eurozone Composite Purchasing Managers’ Index fell to a 10-month low of 50.5 in March, down from 51.9 in February, as the war drove input costs to their highest in more than three years and triggered the worst supply chain disruptions since mid-2022.
“The flash eurozone PMI is ringing stagflation alarm bells as the war in the Middle East drives prices sharply higher while stifling growth,” said Chris Williamson, chief business economist at S&P Global Market Intelligence.
The fall in the PMI comes as German figures held up relatively well, while other major economies took a bigger hit, including France, where business confidence tumbled.
Separate data released a day earlier showed consumer confidence in the bloc falling to its lowest level since late 2023, marking one of the steepest declines on record and dropping well below its long-term average as economic pressures weigh on households.
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Eurozone private sector growth almost stalled this month, a key survey showed on Tuesday, adding to evidence that the bloc is already feeling econo...
A senior U.S. official has arrived in Georgia, renewing attention on the country’s strategic infrastructure and its growing role as a regiona...
Italy is voting on 22 and 23 March in a judicial reform referendum that could reshape the justice system and test Prime Minister Giorgia Meloni’s political strength ahead of the 2027 general election.
The ongoing escalation in the Middle East involving the United States, Israel and Iran is not merely another episode in the long history of the region's crises. It is also a revealing illustration of Europe’s increasingly conflicted position within a rapidly transforming international order.
A Chinese man, Zhang Kequn and his Kenyan associate, Charles Mwangi, have been charged by a court in Kenya for alleged involvement in illegal dealings of wildlife species.
The Scottish Parliament has voted against legalising assisted dying, ending a years-long campaign to make Scotland the first part of the UK to allow the practice.
The pilot and co-pilot of an Air Canada Express regional jet were killed after it collided with a fire truck while landing at New York's LaGuardia airport late on Sunday, in an incident that closed the airport, authorities and U.S. media said.
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Georgia bid farewell to Catholicos-Patriarch Ilia II on Sunday (22 March). He was considered one of the most influential spiritual leaders in the country’s modern history.
The fallout from U.S. President Donald Trump's comment saying he had productive talks with Iran continues. Tehran denies they have happened. Oil prices carry on rising with countries reacting. Follow the updates throughout the day.
Qatar has confirmed that seven people, including four of its military personnel and three Turkish nationals, were killed on Sunday (22 March) when a helicopter crashed in the country’s territorial waters.
China is raising domestic petrol and diesel prices under temporary measures to manage a sharp surge in global oil costs, aiming to support fuel suppliers while maintaining market stability during a period of heightened volatility.
Russia launched drones and missiles overnight on Tuesday at Ukraine, killing at least three people, damaging houses and triggering fires, Ukrainian officials said.
British Prime Minister Sir Keir Starmer said on Monday (23 March) that Britain must plan for the possibility that the Iran war could continue for some time, and added that he had no "meaningful concerns" about energy supply.
Australia and the European Union signed a trade deal on Tuesday that was eight years in the making, removing tariffs for almost all European goods and for nearly all exports of Australian critical minerals.
Italian voters emphatically rejected a flagship judicial reform championed by Prime Minister Giorgia Meloni, dealing a blow to her right-wing coalition ahead of next year's general elections. Meloni posted on social media "clearly, we regret this missed opportunity to modernise Italy".
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