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- Subdued growth of euro area continues in April - IHS Markit
Subdued growth of euro area continues in April - IHS Markit
According to the report from IHS Markit, the Eurozone PMI Composite Output Index recorded 51.5 in April, compared to 51.6 in the previous month. The latest index reading was the lowest for three months, though a little firmer than the flash reading of 51.3. Moreover, despite its modest level in April, by remaining above the 50.0 no-change mark, the index signalled that growth of the private sector economy has now been recorded continuously for nearly six years.
The Eurozone PMI Services Business Activity Index remained above the 50.0 no-change mark level during April, though by falling to 52.8 from 53.3 in the previous month, signalled a slightly slower rate of expansion. Economists had expected a decline to 52.5.
The moderation in growth occurred despite an improvement in growth in Germany and a return to expansion in France. Noticeably slower gains in activity were seen in Italy and Spain.
In contrast, there was a slight pick-up in growth in new business recorded during April, which continued to encourage firms to take on additional workers. Higher staffing levels meant that firms were able to keep on top of their workloads, as highlighted by data on backlogs of work which showed no change since March. Rising employment costs did, however, help to underpin another round of input cost inflation in the services economy. Although firms tried to pass on higher costs to clients, the degree of increase was slightly slower than the previous month.
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