Brussels: Private sector activity in the Eurozone slowed in March due to the US-Israeli attack on Iran, which led to higher energy costs and disruptions to companies' supply chains.
According to Yemen News Agency, a statement issued Tuesday by S and P Global explained that the Flash Purchasing Managers' Index (PMI), calculated based on surveys of companies, fell to 50.5 this month, compared to 51.9 in February. A value below 50 indicates contraction, while a value above 50 reflects expansion.
The statement noted that the PMI reached its lowest level in 10 months, reflecting "a near-complete halt to private sector growth, amid declining new orders."
The statement also indicated that growth in France's services sector fell to its lowest level in five months, with the composite private sector activity index dropping to 48.3. Meanwhile, Germany experienced a slowdown in private sector growth, with the index at 51.9, supported by a slight improvement in manufacturing.
According to the statement, industrial activity in Italy and Spain remained below 50, indicating a contraction, while Greece maintained moderate growth in its manufacturing sector.
At the same time, the statement noted a slight increase in industrial sector growth to 51.4 points, supported by the recovery of the sector in Germany.
These indicators collectively reflect the continued pressure on the Eurozone from rising energy costs and supply chain disruptions, coupled with a clear slowdown in both domestic and international demand.
On February 28, the United States and Israel launched a new aggression against Iran, resulting in the deaths of hundreds of civilians and targeting schools, hospitals, mosques, and other infrastructure belonging to the Iranian people.
In response to the aggression, Iran launched Operation True Promise 4 against Israel and US bases in the region.