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Euro area economic activity still close to stagnation

Euro area economic activity in April

Euro area private sector activities are still close to stagnation in April, according to the flash Purchasing Managers’ Index released on Thursday.

Markit’s Composite PMI of manufacturing and services retreated to 51.3 this month from 51.6 in March as political uncertainty and trade wars hit companies.  

The manufacturing sector remained in contraction, rising slightly to 47.8 in April from 47.5 in March, while the services narrowed its expansion to 52.5 from 53.3.

“Specific concerns focused on rising political uncertainty, including Brexit, trade wars and protectionism.,” IHS Markit said.

“The surveys indicate that quarterly eurozone GDP growth has slowed to just under 0.2%,” Markit’s chief economist Chris Williamson said.  

As of 08:37 GMT, the euro traded lower at $1.1258, after paring some of its earlier losses when it dipped to a bottom at $1.1243. 

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