Indicating that the pace of slowdown is easing in Eurozone, the composite, manufacturing and services purchasing managers' indexes, or PMIs rose to six-month highs in April, reports showed Thursday citing data from the Markit Economics.
The flash manufacturing PMI for the euro area rose to a six-month high of 36.7 in April from 33.9 in March, exceeding the expectations for a reading of 34.7. Further, the flash services PMI improved to 43.1 from 40.9 in March, the highest since October. Hence, the composite index jumped to a six-month high of 40.5 in April from 38.3 in March.
This supports our expectation that the euro economy will contract at a slower rate in the spring than at the start of the year, Commerzbank analyst Christoph Weil said. Even so, the analyst said the pressure is still on the European Central Bank to cut rates again.
A PMI reading above 50 indicates expansion in the sector, while below 50 suggests contraction.
The flash manufacturing PMI for the biggest Eurozone economy, Germany, was at 35 in April, up from 32.4 in March, while expectations was for a reading of 33.
The measure for activities in the German service sector stood at 43.5, an increase from the previous month's 42.3. Economists had expected a slight increase to 42.4. The composite PMI rose to a five-month high of 39.7 in April from 38.3 in March.
Further, the French flash manufacturing PMI rose to 40 from 36.5 and the services PMI climbed to 46.2 from 43.6. The composite PMI that includes manufacturing and services sector, improved for the second straight month in April, though it is still below the 50 no-change mark. The reading stood at 43.5 in April, up from 41.4 in March.
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