Eurozone business activity grew faster in March: key survey

Flags of the European Union flutter in front of the headquarters of the European Central Bank (ECB) in Frankfurt am Main, western Germany. Business activity in the eurozone went up for the third straight month in March 2025. AFP

BRUSSELS, Belgium – Business activity in the eurozone increased for a third consecutive month in March, with the pace of expansion accelerating — but remaining “slight nonetheless”, a closely watched survey showed on Monday.

The HCOB Flash Eurozone purchasing managers’ index (PMI) published by S&P Global registered a figure of 50.4 this month, up from 50.2 in February, reaching a seven-month high.

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“Although only slight, the latest rise was the fastest since last August,” the survey said.

Any reading above 50 indicates growth, while a figure below 50 shows contraction.

The overall increase in output reflected growth across both manufacturing and services, with the former seeing expansion for the first time in two years, the report said.

Germany in particular experienced sustained growth in March in part thanks to a renewed expansion in manufacturing output, it noted.

A key driver of Europe’s economy, the country last week approved a colossal defense and infrastructure spending package following elections in February.

“Just in time with the beginning of spring we may see the first green shoots in manufacturing,” said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.

“Given the will of Europe to invest heavily in defense and infrastructure… hope for a more sustained recovery seems well founded.”