INSIGHTS
- According to the most recent Hamburg Commercial Bank purchasing managers’ index survey, the eurozone economy continued its monthly expansion at the start of the second quarter, extending the expansionary trend witnessed since the year’s beginning.
- But throughout the month, industrial output decreased for the first time since January.
The latest Hamburg Commercial Bank (HCOB) purchasing managers’ index (PMI) survey revealed that the eurozone economy had a further monthly expansion at the start of the second quarter, continuing the expansionary sequence recorded since the start of this year.
In fact, growth surged to an 11-month high, signifying a further boost in momentum after strong upturns in both February and March, according to a report from S&P Global
However, while industrial production decreased for the first time since January, April’s substantial gain in output was completely attributable to growth in services activity.
In a similar vein, the struggling manufacturing sector’s order books continued to contract despite a robust increase in demand for services.
While input price pressures remained historically high, they decreased to a 26-month low in April as inflationary pressures continued to decline. The next month had the lowest increase in output prices in the previous two years.
In April, Italy had a significant improvement, with growth nearly reaching a one-and-a-half-year high. In contrast to France’s slower and more subdued recovery, the largest economy in the eurozone, Germany, also had stronger momentum.
Improving demand circumstances encouraged higher levels of economic activity in the euro region in April. For a third straight month, new order inflows increased, mildly accelerating to their fastest rate since May 2022.
According to the most recent survey data, however, increased new business was only coming from domestic sources as new export orders decreased for the fifteenth consecutive month. However, the fall in sales to overseas clients did moderate and reached its lowest point in nearly a year.
By: Mansi Suryawanshi
