Eurozone Private Sector Growth Eases On Weaker Demand

RTTNews | 67 days ago
Eurozone Private Sector Growth Eases On Weaker Demand

(RTTNews) - Euro area private sector growth weakened in April as soft demand conditions limited the speed of expansion and weighed on sentiment, final results of the purchasing managers' survey by S&P Global showed on Tuesday.

The HCOB final composite output index fell to 50.4 in April from 50.9 in March, but the reading suggested growth for the fourth straight month. However, the score remained close to the neutral mark of 50, signalling weak growth. The upturn was entirely driven by the manufacturing sector, where output grew at its fastest rate since March 2022. Meanwhile, there was a near-stagnation of activity in the services industry.

Among major economies, France remained the outlier, registering a contraction for the eighth month.

Italy posted the fastest growth in nearly a year, but trailed Spain's upturn, despite growth there easing to a 15-month low. Germany's private sector moved closer to stagnation.

Germany's composite PMI eased to 50.1 in April from 51.3 in March but above the flash score of 49.7. This followed growth in each of the last three months of the year. A fall in services activity counteracted a faster growth in manufacturing output.

Services activity shrank for the first time since November last year. The services PMI fell to 49.0 from 50.9 in March. The flash reading was 48.8. France's private sector posted its eighth straight monthly decline in April. The final composite indicator came in at 47.8 compared to 48.0 in March. The flash reading was 47.3.

The service sector drove the downturn as manufacturing production rose for the first time in nearly three years. The services PMI slid to 47.3 from 47.9 in the previous month. The initial score was 46.8.

Italy's private sector grew the most in eleven months in April. The composite output index climbed to 52.1 from 50.5 in the previous month.

Services activity grew at a faster pace, while the downturn in manufacturing neared stabilization. The services PMI rose unexpectedly to 52.9 from 52.0 a month ago. The score was forecast to ease to 51.3.

Private sector activity in Spain continued to expand but growth retained its downward trend as service sector grew at a slower pace and manufacturing output fell for the first time since last August. The composite index recorded 52.5 in April, down from 54.0 in March. The services PMI declined to 53.4 from 54.7 a month ago.

Germany is expected to soon outpace Italy thanks to a generous fiscal package, while France is likely to remain at the bottom for now due to its uncertain political climate, Hamburg Commercial Bank Chief Economist Cyrus de la Rubia said.

The PMI survey revealed that a sustained period of weak demand has restricted economic growth in the euro area. Both manufacturers and service providers noted weaker sales in April partly due to lower demand for exports.

Private sector employment increased again in April. However, workforce expansions were seen in the service sector only as manufacturing jobs were cut for a twenty-third month in a row.

Year-ahead expectations for activity in the private sector were their weakest in 18 months, reflecting lower levels of positive sentiment at both manufacturers and service providers.

Turning to prices, the PMI survey showed that input cost pressures eased to their weakest in five months, while output charges logged its slowest increase in 2025 so far.

read more
German Exports Decline As Tariff Treats Damp Demand From US

German Exports Decline As Tariff Treats Damp Demand From US

Germany's exports declined for the second straight month in May due to a sharp fall in demand from the US amid tariff threats, data from Destatis revealed on Tuesday. Exports decreased by more-than-expected 1.4 percent month-on-month in May, following April's 1.6 percent fall. Economists had forecast a 0.2 percent drop. Imports slid 3.8 percent from last month.
RTTNews | 4 days ago
Eurozone Retail Sales Drop For First Time In 5 Months; Services Output Fall

Eurozone Retail Sales Drop For First Time In 5 Months; Services Output Fall

Euro area retail sales decreased for the first time in five months and services production declined in May, suggesting a slowdown in the second quarter. Retail sales logged a monthly fall of 0.7 percent in May, reversing April's 0.3 percent increase, Eurostat reported Monday. Sales were expected to drop 0.8 percent. Another data from Eurostat showed that services production decreased 0.3 percen
RTTNews | 5 days ago
Eurozone Investor Confidence Strongest In More Than 3 Years

Eurozone Investor Confidence Strongest In More Than 3 Years

Eurozone investor confidence rose to the highest level in more than three years in July suggesting that fears of recession triggered by the US tariff shocks are completely off the table, survey data from the behavioral research institute Sentix showed on Monday. The investor confidence index advanced to 4.5 in July from 0.2 in June. The reading was the highest since February 2022 and also stayed
RTTNews | 5 days ago
German Industrial Production Rebounds In May

German Industrial Production Rebounds In May

Germany's industrial production rebounded in May driven by robust demand for automobile and pharmaceutical products, official data revealed on Monday. Data released by Destatis showed that industrial production grew 1.2 percent in May from a month ago, confounding expectations for a decline of 0.6 percent. Output in April was revised down to show a 1.6 percent fall compared to the 1.4 percent d
RTTNews | 5 days ago
German Factory Orders Log Bigger-Than-Expected Fall

German Factory Orders Log Bigger-Than-Expected Fall

Germany's factory orders declined more than expected in May on falling demand from both the domestic market and other euro area economies, official data revealed on Friday. Factory orders decreased 1.4 percent from a month ago, Destatis reported. Orders were expected to drop 0.2 percent after an upwardly revised 1.6 percent rise in April. Orders declined for the first time in four months.
RTTNews | 8 days ago
Eurozone Private Sector Expands More Than Estimated

Eurozone Private Sector Expands More Than Estimated

The euro area private sector expanded more than previously estimated in June as both manufacturing and services sectors registered higher output, final survey results from S&P Global showed on Thursday. The HCOB final composite output index advanced to 50.6 in June from 50.2 in May. The reading was well above the flash estimate of 50.2.
RTTNews | 9 days ago
Eurozone Inflation Hits ECB Target

Eurozone Inflation Hits ECB Target

Euro area inflation rose slightly to hit the European Central Bank's 2 percent target in June on slower fall in energy prices and the rise in services inflation, flash estimate from Eurostat showed on Tuesday. Annual inflation climbed to 2.0 percent in June from 1.9 percent in May. The rate reached the inflation target and also matched economists' expectations.
RTTNews | 11 days ago