Brussels, March 24 (QNA) - Growth in the eurozone's private sector slowed in March 2026, as conflict in the Middle East drove up energy costs and disrupted companies' supply chains.

According to a statement released Tuesday by S&P Global, the Flash Purchasing Managers' Index (PMI), compiled from surveys of companies, fell to 50.5 this month, down from 51.9 in February.

A reading below 50 signals a contraction in activity, while a reading above that level indicates expansion.

The statement noted that the index hit its lowest level in 10 months, reflecting near-stagnation in private sector activity amid a decline in new orders.

In detail, services sector activity in France weakened to its lowest level in five months, with the composite private sector output index falling to 48.3. In Germany, private sector activity slowed, with the index at 51.9, supported by a modest improvement in manufacturing.

In Italy and Spain, manufacturing activity remained below the 50 thresholds, indicating contraction, while Greece maintained moderate growth in its manufacturing sector.

At the same time, manufacturing activity edged up slightly to 51.4, supported by a recovery in Germany's industrial sector.

Overall, these indicators point to continued pressures on the eurozone economy from rising energy costs and ongoing supply chain disruptions, alongside a clear slowdown in both domestic and foreign demand. (QNA)