Goldman Sachs: The latest PMI data indicates concerns over European growth

LootboxPhobia · 2026-03-24T21:20:16+00:00

Goldman Sachs analysis shows that the March manufacturing PMI data for Europe and the UK came in below expectations, indicating weak overall economic performance. Input prices rose while the expectations component declined, suggesting a poor economic outlook. Spot activity data needs to align with expectations to support the euro exchange rate.

LootboxPhobia

2026-03-24 21:20:16

Abstract generation in progress

Investing.com – Goldman Sachs released an analysis on Tuesday showing that the manufacturing Purchasing Managers’ Index (PMI) readings for March in Europe and the UK indicate weaker-than-expected economic conditions.

The composite index was below market expectations, with Eurozone data falling short by 0.5 points and UK data by 1.8 points. March PMI data is one of the first key economic indicators reflecting the situation after the recent escalation.

Input prices across regions saw significant increases, while the expectations sub-index declined noticeably. Goldman Sachs noted that this pattern aligns with historical comparison data and recent survey results.

In the first few months after Russia’s full invasion of Ukraine in 2022, Europe’s PMI spot sub-index showed resilience, but it continued to deteriorate throughout the rest of the year. The March ZEW survey released last week indicated worsening expectations over the next six months, while the current conditions index remained resilient.

Goldman Sachs emphasized that the forward-looking PMI sub-indices improved in recent months, consistent with expectations of a cyclical recovery in Europe and increased fiscal spending. February data from Germany continued to show steady progress.

The firm stated that spot activity data need to align more closely with expectations sub-indices to exert upward pressure on the EUR/USD exchange rate. When assessing the impact of Europe’s energy shocks on economic activity, the same principle now applies in reverse.

This article was translated with the assistance of artificial intelligence. For more information, please see our Terms of Use.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.