Solid Eurozone manufacturing PMI in March boosts optimism, US tariffs loom

Eurozone Manufacturing Purchasing Managers’ Index jumped to 48.6 in March from 47.6 previous month and came just below consensus at 48.7.

Fresh rise pushed the index value closer to 50 threshold that divides contraction from growth, brings a dash of optimism as bloc’s long-suffering manufacturing sector showed initial signs of recovery last month as output rose for the first time in two years,

This was the third consecutive PMI’s monthly increase, with the frontloading of orders from the US being the main contributor to better results, though the economists remain cautious on threats that recovery could be hurt by US trade tariffs

US President Donald Trump is set to announce a comprehensive tariff proposal on April 2, after implementing charges on imports of aluminium, steel, and automobiles, along with increased tariffs on all goods from China.

Still, factory manufacturers remained optimistic about the year ahead. The future output index only nudged down to 59.9 from 60.1, holding above its long-run average.