Euro zone economic sentiment slowed for the third month in a row in March, but beat economists’ forecasts, data released by the European Commission showed yesterday.

The data follow Monday’s slide in the Reuters Eurozone Purchasing Managers’ Index for Mard which some analysts said was signalling euro zone growth was dwindling and putting pressure on the European central bank to cut [Merest rates.

The closely-watched headline index for economic confidence in th^ 12 nation euro area fell to 102.2 in March, down from a revised 102.8 a month earlier. But this was above the 102.1 which had been forecast by analysts polled by Reuters.

Other indicators showed a fall. The euro zone industrial confidence indicator fell by 2 points to -1 in March after a deterioration in production expectations, the Commission said.

The retail trade confidence indicator for the 12>nation euro area lost four points to 1 In March.