European Services, Manufacturing Growth Weakened in March

Growth in Europe’s services and manufacturing industries slowed more than economists forecast in March after surging energy costs and Japan’s earthquake clouded the global growth outlook.

A composite index based on a survey of purchasing managers in the 17-nation euro region in both industries fell to 57.5 from 58.2 in February, London-based Markit Economics said today. Economists forecast a drop to 57.8, the median of 16 estimates in a Bloomberg News survey showed. That’s still the second highest level since July 2007. A reading above 50 indicates expansion.