The latest EUR zone PMI data indicates that the ECB will further raise interest rates in the future

On March 24, Franziska Palmas, senior European economist at Capital Economics, said that the March PMI data in the euro zone painted a picture of economic resilience, providing further room for the European Central Bank to raise interest rates in the coming months.

Palmas said the data meant that growth in the euro zone economy in the first quarter was almost certain, and indicated that employment conditions were very strong and inflationary pressures persisted.

“It is clear that economic activity in the euro area will not be directly affected by the U.S. and Swiss banking crises, as banks in the region have not been harmed. But economic activity could still be hit by a crisis-related drop in confidence,” Palmas said.