Eurozone manufacturing PMI drops to 50.5 in March: data

The Eurozone Manufacturing Purchasing Managers' Index (PMI) fell to 50.5 in March, down from 51.9 in February, according to the data released by S and P Global and Hamburg Commercial Bank on Tuesday.

The report noted that the Eurozone Services PMI Business Activity Index fell to 50.1, its lowest level since last May. New orders in the services sector declined for the first time in eight months, weighing on overall economic growth.

It also pointed out that the rate of input cost inflation accelerated sharply following the outbreak of war in the Middle East to the fastest in just over three years. Selling prices also rose at a sharper pace, but the acceleration was much less pronounced than seen for input costs. The war also caused disruption to supply chains, with manufacturers reporting the most marked lengthening of suppliers' delivery times in over three-and-a-half years.

The United States has sent Iran a 15-point peace plan in an effort to end the war, which is now in its fourth week, while the Iranian side insists the conflict will continue until their demands for reparations and sanctions relief are met.

According to media reports on Tuesday, the United States has sent the peace plan to Iran via Pakistan. The plan addresses Iran's ballistic missile and nuclear programs and discusses maritime routes, referring to the Strait of Hormuz.

The plan reportedly demands that Iran dismantle its nuclear capabilities, cease all uranium enrichment, and provide a permanent commitment to never seeking nuclear weapons, according to the reports.

It is also reported that Iran would be required to halt funding and arming allied groups in the region and guarantee that the Strait of Hormuz remains open to international shipping.

In exchange, the United States is offering full sanctions relief, assistance in developing a civilian nuclear energy project in southern Iran's Bushehr, and the removal of the "snapback" mechanism threat that enables the reimposition of previously lifted UN sanctions on Iran.

Reports also indicate that the United States is considering a one-month ceasefire to facilitate further negotiations on the plan.

However, Mohsen Rezaei, the new military advisor to Iran's Supreme Leader, said Monday that Iran will continue its war with the United States until its demands are met, including full reparations, economic sanctions relief and guarantees of non-interference in its internal affairs.