Source: Sharecast
The HCOB eurozone composite PMI output index fell to 50.4 for April, down from 50.9 in March as new orders fell on the back of weak demand.
In the services sector, the services PMI hit 50.1 a five month low and down from March’s 51.0. Any reading over 50 indicates expansion.
April’s upturn was almost entirely underpinned by the manufacturing sector, where output rose at its fastest rate since March 2022, HCOB said. However there was a "near-stagnation" of activity in the services industry after four months of mild expansion.
“Eurozone economic growth slowed at the start of the second quarter, following a pick-up in the first three months of the year. The services sector, which is a major player, practically stagnated in April. Even though manufacturing output saw a surprising uptick, it wasn’t enough to prevent the overall slowdown in growth," said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.
"In the services sector, cost pressures are still relatively high, though they have eased a bit over the past couple of months. Inflation is down for sales prices and continued to trend lower."
"Many members of the European Central Bank (ECB) have been hinting at another interest rate cut in June, and these latest figures seem to support their stance."
Reporting by Frank Prenesti for Sharecast.com