The European Central Bank left its key interest rates unchanged last week and dowsed speculation that it might introduce unconventional measures to boost the eurozone’s economy. However, ECB president Mario Draghi said the governing council meeting discussed the issue of quantitative easing.

The bank left its main refinancing rate at the record low of 0.25 per cent, as consumer prices in the eurozone fell further in March. This fall came as a surprise, Mr Draghi said, adding that the bank had underestimated the downward movement of global energy prices.

In the meantime, a measure of UK manufacturing unexpectedly eased in March as demand for exports fell to its lowest level in 10 months. The Purchasing Managers’ Index, compiled by Markit Economics, declined to 55.3, the lowest since July from a revised 56.2 in February. Economists surveyed by Bloomberg News forecasted a PMI of 56.7.

In the meantime, February’s reading was trimmed to 56.2 from an originally reported reading of 56.9. The March reading was the fourth month in a row that the index fell, although it remained comfortably above the 50 mark that delineates growth from contraction. The UK’s economic expansion of 1.7 per cent last year was the strongest since 2010.

Finally, the US ISM Manufacturing Index, a widely followed measure of the country’s manufacturing sector, rebounding off the eight-month low in March when compared to February.

The Institute for Supply Management said its manufacturing index rose to 53.7 per cent from 53.2 per cent in February. This was slightly less than the 53.9 per cent forecast by economists polled by Bloomberg News. Readings over 50 indicate the sector is expanding instead of shrinking. However, the March reading remained below November’s recent peak of 57, which was the highest since April 2011.

In the meantime, consumer spending in the US increased during February by the most in three months as household purchases rose by 0.3 per cent in February after a 0.2 per cent rise in January.

This article was compiled by Bank of Valletta for general information purposes only.