Surveys show that economic activity in the Eurozone has significantly slowed, and stagflation risks have increased.

According to a survey released on the 7th by S&P Global, influenced by factors such as the escalation of energy costs and disruptions to supply chains caused by the Middle East conflict, economic activity in the eurozone’s private sector significantly slowed in March. The data shows that the eurozone’s composite Purchasing Managers’ Index (PMI) for March was revised down from 51.9 in February to 50.7, the lowest level in nine months. By industry, the eurozone’s services PMI for March was revised down from 51.9 in February to 50.2, the lowest in ten months. Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, believes that the March PMI data indicates that the Middle East conflict has dealt a heavy blow to the eurozone economy. He said that due to soaring energy prices, supply chain disruptions, financial market volatility, and a renewed decline in demand, the growth signs that appeared earlier this year in the eurozone have now disappeared, and rising prices have also raised concerns about stagflation or even worse situations in the short term. Williamson stated that unless the Middle East conflict is quickly resolved, the eurozone economy may face a recession risk in the second quarter of this year. Even if the conflict ends swiftly, the destructive impact on the energy markets caused by the war could persist for several months. (Xinhua News Agency)