Increase the commercial activity in the euro area thanks to the rebound in the German manufacturing sector

The European economic engine could finally start. The rebound in the German manufacturing sector and the relaxation of prices on prices throughout the euro offer a Ray of Hope for the first European economywhose growth Has decreased in recent years.

The latest commercial polls, known as Purchasing managers indices (PMI), reveals that the private sector of the euro area grew in March for the third consecutive month. The PMI index consisting of the euro area, prepared by global S&P and measures the activity of services and producers, roses 50.4 from 50.2 February.

Even if it was inside its highest level in seven monthsIt remained slightly below the expectations of consent, which were waiting for a 50.8. Readings above 50 indicate growth, while the lower ones underline the contraction.

Production production shots while the pressure on prices slows down

The manufacturing production of the Eurozone has grown againexpanding for the first time in two years and reaching the highest level since May 2022. This resistance is largely due to a surprising rebound in the sector in Germany, where the producers were safer After the announcement of a new tax package. “There is a certain probability that Europe would take the opportunity and monsters more units regarding reforms, defense expenses and completion of the union of the capital market, to mention some things”, says Cyrus of the blonde, head of the commercial bank of Hamburg.

While the manufacturing sector surprised positively, the growth of the activity of the Services He slowed down. The SME services dropped to 50.4 from 50.6 February, Below the expectations of 51. Another positive point was the remarkable reduction in inflationary pressures. The inflation rate of the input costs – a measure of what companies pay for materials and services – has been reduced to its lowest level since November, ending a five -month bullish series.

Likewise, sales prices are softened, with the weaker increase rhythm of 2025 to today. This could give a respite to the European Central Bank when considering When to start cutting interest rates. Analysts hypothesized that type reductions could already be filmed In Juneprovided that inflation continues to tend towards the target of 2% of the ECB. “The evolution of prices in the tertiary sector, very supervised by the ECB, will be well accepted by the pigeons (the less orthodox economic sector) of the monetary authority,” said the blonde.

Germany leads the rebound; France is late

The SME composed of Germany has risen to 50.9 in March from 50.4 of the previous month, marking its best result from May 2024. Although it is still modest compared to historical levels, reading confirms that the largest economy in Europe You’re getting back gradually. The German production production index rises to 52.1 from 48.9, reaching a maximum of 36 months.

The impulse of the service sector has slightly weakened, with a SME that fell to 50.2 from 51.1, below the consensus expectations of 51.6, which suggests that service providers are passing through the brake.

The second economy of the euro area continues to go through difficulties. The SME composed of France climbed to 47.0 in March from 45.1 in February, also in the territory of contraction but above the expected. The production contracted for seven consecutive months, weighed with Persistent weakness of the sector and services.

The French manufacturing SME improved up to 48.9 compared to the last 45.8, while the service has risen to 46.6 from 45.3. Although it continues to indicate a decline, the slowdown of the rhythm of contraction indicates it The worst may have happened.

“National and international uncertainty, competitive pressures and poor demand in key sectors such as cars, buildings and agriculture have been mentioned as reasons for the moderation of perspectives,” says Tariq Kamal Chaudhry, an economist of the Hamburg Commercial Bank. “Although the hopes of improving the activity increase at the highest level in nine months,” he adds.

Can Europe take advantage of this impulse?

The inequal results of the Eurozone – with Germany accelerating and the delay of France – indicate – indicate An economy in transition Towards a possible recovery phase. Even so, a slight rebound in the activity and relaxation of inflation could open the door to the European Central Bank to relax its rigorous monetary policy at the end of this year, provided that this possible disorders derived from the US rates remain limited.

In more general terms, there is a cautious optimism in which Europe’s commitment to structural reforms and tax investments could support long -term competitiveness. It remains to be seen if the March data Mark the beginning of a lasting recovery or if it is only a temporary respite. But for the moment, the European economy is finally giving signals of movement and markets are paying attention.

The euro increased by 0.2% to 1,0830 MondayWhile the European share markets have recorded modest profits. The Euro Stoxx 50 index increased by 0.3%, while the German Dax was re -evaluated by 0.8%.