STAGFLATION: A NEW CHALLENGE FOR THE EURO ZONE 2/3

The Eurozone Composite PMI plummeted to 50.5 in March, signaling that private sector expansion has virtually ground to a halt. While manufacturing reached a deceptive 45-month high due to temporary German acceleration, this momentum is undermined by lengthening delivery times and bottlenecks caused by the Strait of Hormuz disruption. This sudden loss of industrial velocity suggests that the region's brief recovery phase has already peaked.