Eurozone Economy Grows Amid France's Continued Contraction

The eurozone economy saw marginal growth at the end of the first quarter, with the Composite PMI rising slightly to 50.4 in March, indicating a modest GDP growth of 0.1%. This growth is primarily driven by a revival in manufacturing, especially in Germany, while the services sector continues to contract, fueling expectations of an ECB interest rate cut. In France, the private sector remains in contraction for the seventh consecutive month despite a slight improvement in the PMI to 47.0, reflecting ongoing economic uncertainties and weak demand. French manufacturing showed signs of improvement, though it still indicates a decline, while the services sector struggles with reduced demand and job cuts. The outlook for the French economy remains pessimistic due to domestic and international uncertainties, despite some easing in input cost pressures.