Eurozone composite PMI index revised lower, still at 71-month high

The final Markit Euro-zone PMI services sector index for March was revised lower to 56.0 from the flash reading of 56.5 and this was below expectations of an unchanged reading. The final composite reading was also revised lower to 56.4 from the flash reading of 56.7, although it was still the strongest reading for 71 months.

Eurozone output and new order growth accelerated to near six-year records in March. Inflow of new business was the strongest since April 2011 and order backlogs also increased at the fastest pace for close to six years. Employment gained at the fastest pace for close to 10 years.

Price pressures remained strong in March. Input cost inflation was close to February’s 69-month record, while output charges rose to the greatest extent since June 2011. March data signalled the steepest increase in average service charges since July 2011.

The outlook for the eurozone service sector brightened in March. The overall degree of business optimism rose to a six-year high. This reflected expectations of further improvements in both economic growth and market demand during the coming 12 months.