(MENAFN– ecpulse) European composite of manufacturing and services was revised down in March, ahead of the awaited European Central Bank decision later in the day.
A composite of manufacturing and services, accordingly, ticked down to 53.1 from 53.3, coming below projections of 53.1.
PMI manufacturing narrowed expansion to 53.2 in March from a prior of 53.3, while the services gauge retreated 52.2 from 52.6, lower than the flash reading of 52.4.
In Germany, the manufacturing sector slipped to a four-month low of 53.7 from a prior of 54.8, while services dropped to 53.0 from a previous of 55.9.
French manufacturing, on the other hand, shifted to expansion after recording 52.1 from the prior contraction of 49.7, and the services PMI rose to 51.5 from 47.2.
The ECB has mentioned that recovery in the euro area will take place in a gradual manner this year, yet the low inflation constitutes one of the main challenges meanwhile.
The growth pace in the 18-nation region picked up in the fourth quarter to mark 0.3 percent expansion from the prior 0.1 percent growth.
A report released last week showed European economic confidence resumed its advance for an 11 th consecutive month in March to hit its highest level since July 2011.
Later in the day, the shift will focus to the ECB as it is predicted to introduce new monetary tools to stave off the recent deflationary pressures.
ECB President Mario Draghi said he has been preparing for new monetary tools to combat deflation.
As long as inflation remains low the higher the possibility the euro area would reel from deflationary pressures, Draghi has revealed.
CPI for the year ended March retreated further to 0.5 percent from a previous of 0.7 percent. Therefore, a new bank-lending programs and large-scale asset purchases may be on the table today.
The ECB decided to cut the benchmark interest rate to record low of 0.25 percent in November last year when inflation hit the current level of 0.7 percent.
As of 08:10 GMT, the euro traded slightly lower versus the U.S. dollar around 1.3762 after hitting a high of 1.3771.
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