Composite PMI falls to 3-month low in April
Leading indicators point to another lackluster month for the Euro area’s economy. In April, the Eurozone Composite Purchasing Managers’ Index (PMI), produced by IHS Markit, fell to 51.3 points from March’s 51.6 points. It marked one of the worst readings in the past five years, but remained just above the 50-point threshold that distinguishes expanding business activity in the Eurozone.
The downturn was driven by a lower reading in the Services PMI Activity Index, which hit a three-month low in April. Meanwhile, new order growth picked up slightly despite a sharp fall in orders from abroad. Firms added jobs although the pace of expansion was one of the slowest seen since 2016.
Regarding the Eurozone’s two largest economies, a solid performance by Germany’s service sector helped offset a downturn in the manufacturing sector. Meanwhile, France’s composite index revealed stagnating conditions and recorded one of the worst readings since mid-2016.