The S&P Global Eurozone Services PMI slipped to 50.2 in March 2026 from 51.9 in February, broadly in line with the flash estimate of 50.1 and signaling the weakest expansion since May of the previous year. Demand conditions worsened, as new business declined for the first time since July 2025 and at the fastest rate in 16 months, while export sales also contracted more sharply.
Service providers continued to work through outstanding business, extending a trend in place since November. Employment was effectively flat, with hiring activity hovering near a five-year low. Business confidence softened markedly, falling to a ten-month trough amid heightened uncertainty.
At the same time, cost pressures strengthened. Input price inflation quickened to its highest level in 34 months, even as the rate of increase in prices charged to customers eased slightly compared with February.
