The European business landscape reported a mixed picture in March, with 11 of the 19 core sectors reporting an expansion in output, according to the latest S&P Global Europe Sector PMI data.
This was down from 15 sectors that showed growth in February, indicating a widening slowdown across the European business sector.
Strong performer
The Automobiles & Auto Parts sector emerged as the strongest performer for the month, topping the growth rankings for the first time since December 2020. Production in this sector expanded at the fastest pace since March 2023, reflecting robust demand for vehicles and related components.
At the same time, several consumer goods sectors, including Household & Personal Use Products and Beverages & Food, saw declines in output, highlighting uneven performance within the wider economy.
The Tourism & Recreation sector recorded the steepest fall in activity in March, occupying the lowest rank in the output table. Media, another consumer services segment, saw only a marginal increase in output.
New orders
In broad terms, across the European economy, new order inflows weakened further. Four sectors – Tourism & Recreation, Banks, Other Financials, and Real Estate – experienced contractions in new sales, while nine sectors saw growth in new orders, marking the lowest number since November 2025, S&P Global noted.
Cost pressures remained intense across the continent. All 19 sectors reported rising input prices, with 17 seeing an acceleration in cost inflation compared with previous months. Media and Real Estate were the only sectors where the pace of increase did not accelerate, though both still experienced cost pressures above long-run averages.
‘Almost all sectors recorded hikes in output charges during March,’ the report noted. ‘The only exception to this was Other Financials which signalled a marginal drop in selling prices. At 18, the number of monitored sectors seeing a rise in output prices was the highest since February 2023. In line with the trend for input costs, Transportation registered the most marked increases in each.’ Read more here.
