In April, the Manufacturing PMI in the Eurozone stood at 48.7 points. This figure is comparable to the previous month’s result but notably exceeded market expectations, which had predicted a reading of 47.4.
The Services PMI, however, came in at 49.7 points, dropping below the critical 50-point threshold that separates expansion from contraction in economic activity. Particularly disappointing were the figures from France, where the Services PMI dropped to 46.8 points, and Germany, which recorded a reading of 48.8.
The Composite PMI for the Eurozone in April was 50.1, slightly lower than the 50.4 recorded in March. While the industrial sector remains weak—despite showing some early signs of recovery—the services sector is increasingly slowing down and no longer serves as the economic engine it was just a few months ago.
These PMI readings could play a key role in shaping the European Central Bank’s upcoming policy decisions. Continued signs of economic weakness and deteriorating growth prospects may provide justification for further interest rate cuts in the Eurozone.
Bartosz Wałecki, Analyst & Trader, Michael / Ström Brokerage House
Source: ceo.com.pl
