Eurozone Preliminary Manufacturing PMI beats estimates with 55.3 in April

• Eurozone Manufacturing PMI arrives at 55.3 in April vs. 54.7 expected.
• Bloc’s Services PMI jumps to 57.7 in April vs. 55.0 expected.
• EUR/USD is attacking 1.0800 despite the upbeat Eurozone PMIs.

The Eurozone manufacturing sector activity expanded more than expected in April, the latest manufacturing activity survey from S&P Global research showed on Friday.

The Eurozone Manufacturing purchasing managers index (PMI) arrived at 55.3 in April vs. 54.7 expectations and 56.5 last. The index hit 15-month lows.

The bloc’s Services PMI jumped sharply to 57.7 in April vs. 55.0 expected and 55.6 previous. The indicator recorded 8-month highs.

The S&P Global Eurozone PMI Composite rose to 55.8 in April vs. 53.9 estimated and 54.9 previous. The gauge reached the highest in seven months.

Comments from Chris Williamson, Chief Business Economist at S&P Global

“April saw a two-speed eurozone economy. Manufacturing came close to stalling due to ongoing supply constraints, rising prices and signs of spending being hit by risk aversion due to the war.”

“However, April also saw manufacturers suffer due to a shift in demand from goods to services amid looser pandemic restrictions, most notably via a record surge in spending on activities such as travel and recreation.”

"Common across both sectors, however, was a further surge in cost pressures, driven by soaring energy and raw material costs, as well as rising wages.”

FX implications

EUR/USD fails to find any respite from upbeat Eurozone PMIs, as it attacks 1.0800, down 0.30% on the day.