The composite HCOB PMI index of total activity in the Eurozone for April has been released today, registering at 50.1 points, down from 50.9 points in March. Despite this decline, it remains slightly above the 50-point threshold that distinguishes growth from contraction.
This growth was made possible by a second consecutive monthly increase in industrial production, although the services sector experienced a contraction, ending a four-month growth streak.
The report explains that this constraint in activity is due to a reduction in new orders for the eleventh consecutive month, marking the most significant decline in the past year, including those aimed at export.
Furthermore, April saw a “sharp decline” in business confidence, falling to its lowest level since November 2022, with deterioration observed across all sectors and geographical areas.
Nonetheless, employment levels were maintained, as the “modest” increase in staffing in the service sector offset the “solid decline” in the industrial sector.
On the price front, the cost of acquisition increased at its slowest pace since November 2024, a “weak” rise that was also reflected in selling prices.
