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.
Iran temporarily reopened the Strait of Hormuz on Friday (17 April) following a ceasefire agreement in Lebanon, ra...
Australia and Japan signed contracts on Saturday (18 April) launching their landmark A$10 billion ($7 billion) dea...
Global shipping through the Strait of Hormuz has shown signs of partial recovery after Iran announced it was open to commercial vessels during a li...
Iran reopened the Strait of Hormuz to commercial shipping on Friday (17 April) for the first time since the U.S. and Israel killed Iran's ex-Su...
Leaders from across Europe and beyond gathered in Paris on Friday for a summit aimed at managing the global impact of the Middle East conflict....
A low-profile diplomatic visit to Tbilisi may prove more consequential than it first appears, as representatives of France, Germany and Poland meet figures across Georgia’s political spectrum, signalling that Brussels is watching closely ahead of a key EU foreign ministers’ meeting.
The current Middle East crisis has already had profound macroeconomic and energy consequences. It also reflects a broader phase of globalisation, where interdependencies can be weaponised for geopolitical purposes.
Türkiye and the World Bank have signed a new partnership to strengthen Türkiye’s connectivity with Europe, Asia and the Middle East, supporting hundreds of thousands of jobs, including the creation of 100,000 more worldwide.
Russia published addresses of manufacturers allegedly producing drones or components for Ukraine on Wednesday (15 April), warning European countries against plans to step up UAV supplies to Kyiv.
The past 24 hours of the Russia-Ukraine war have seen a drastic escalation in both aerial bombardment and frontline losses.
Iran reopened the Strait of Hormuz to commercial shipping on Friday (17 April) for the first time since the U.S. and Israel killed Iran's ex-Supreme Leader in air strikes, triggering the Middle East conflict, at the end of February. A U.S. blockade on Iranian ports, however, remains in force.
Russia published addresses of manufacturers allegedly producing drones or components for Ukraine on Wednesday (15 April), warning European countries against plans to step up UAV supplies to Kyiv.
Netflix shares fell sharply on Friday after the streaming group issued a weaker-than-expected outlook and said chairman and co-founder Reed Hastings will step down from the board.
U.S. President Donald Trump says Israeli and Lebanese leaders have agreed to a 10-day ceasefire that includes Hezbollah, raising cautious hopes of a pause in hostilities after weeks of escalating tensions.
Australia and Japan signed contracts on Saturday (18 April) launching their landmark A$10 billion ($7 billion) deal to supply Australia with warships, Tokyo's most consequential military sale since ending a military export ban in 2014.
Leaders from across Europe and beyond gathered in Paris on Friday for a summit aimed at managing the global impact of the Middle East conflict.
European leaders have set out plans for a coordinated defensive mission to restore freedom of navigation in the Strait of Hormuz, once security conditions allow, following talks involving more than 40 countries.
NeaNearly 900 Rohingya refugees were reported missing or dead in the Andaman Sea off Myanmar in 2025, making it the deadliest year on record, the United Nations Refugee Agency said on Friday.
Tens of thousands of people filled a stadium in Douala on Friday, hoping to catch a glimpse of Pope Leo during what is expected to be the largest event of his African tour.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment