According to the report from IHS Markit, Composite Output Index continued to signal modest growth of the euro area’s private sector economy in March.

After accounting for seasonal factors, the index recorded 51.6, down slightly from 51.9 in the previous month but a little firmer than the earlier flash reading of 51.3. March’s headline PMI Output index belied notably divergent trends in activity across the region’s manufacturing and service sectors. Whereas services activity rose in March at the strongest rate since last November, goods producers recorded the greatest monthly fall in output since April 2013.

The weakness in manufacturing production was closely linked to deteriorating demand conditions, both at home and abroad. New work placed at manufacturing firms fell at the greatest rate since late-2012, which broadly offset solid growth in services. Overall private sector new work was subsequently only slightly higher than in February.

March’s IHS Markit Eurozone PMI Services Business Activity Index rose further above the 50.0 no-change mark, reaching a level of 53.3, from 52.8 in February. The latest reading was the best recorded since last November.