Growth of private sector business activity was unrevised in the final look at March. The 52.6 final composite output index matched its flash estimate and so remains nearly 2 full points above its final reading in February and indicative of a modest rate economic expansion.

The final service sector PMI weighed in at 53.7, a couple of ticks short of its flash estimate but still well above the final 50.9 posted in mid-quarter. Indeed, this was a 10-month high. As shown in the preliminary report, the improvement reflected stronger gains in new business and another increase in backlogs. Employment also continued to rise, despite ongoing shortages of staff. Looking ahead, service providers remained optimistic about the coming year, although expectations were still well below the level seen prior to Russia's invasion of Ukraine.

Meantime, input costs climbed sharply on the back of rising wage demands and, while the inflation rate eased, it remained historically elevated. A similar pattern held true of output prices.

In sum, the updated March results suggest that real GDP growth moved back above zero last quarter. However, the PMI surveys still warn that the recovery remains very lopsided and dependent upon a buoyant service sector. At 14 and 8 respectively, the German ECDI and ECDI-P indicate overall economic activity running just slightly ahead of market expectations.

No revisions are expected.

The Composite Purchasing Managers' Index (PMI) provides an estimate of private sector output for the preceding month by combining information obtained from surveys of around 1,000 manufacturing and service sector companies. Results are synthesised into a single index which can range between zero and 100. A reading above (below) 50 signals rising (falling) output versus the previous month and the closer to 100 (zero) the faster is output growing (contracting). The report also contains the final estimate of the services PMI. The data are provided by S&P Global.

The Purchasing Managers Index (PMI) survey has developed an outstanding reputation for providing the most up-to-date possible indication of what is really happening in the private sector economy by tracking variables such as sales, employment, inventories and prices. The indices are widely used by businesses, governments and economic analysts in financial institutions to help better understand business conditions and guide corporate and investment strategy. In particular, central banks in many countries (including the European Central Bank) use the data to help make interest rate decisions. PMI surveys are the first indicators of economic conditions published each month and are therefore available well ahead of comparable data produced by government bodies.