Eurozone economic expansion modest in April

Eurozone April final Markit Composite Output Index was confirmed at the earlier flash estimate of 53.0. The reading was a pip below March’s 53.1 and showed the rate of eurozone economic expansion remained only modest in April.

All the ‘big-four’ nations all reported expansions of economic activity in April. Spain's economic activity saw the steepest rate of increase with output growth accelerating to a three-month high, despite a slower rate of increase for new business. French economy expanded for the first time in three months in April, while Germany posted a further solid increase.  Italy also saw a modest improvement in its rate of output expansion.

Final Eurozone Services Business Activity Index stood at 53.1 in April, unchanged from March and signalling a steady but modest growth at the start of the second quarter. The index remained above the 50.0 no-change mark for the thirty-third successive month. The sharpest rates of output growth were registered by Spain and Germany, while France returned to expansion following back-to-back contractions in February and March.

Eurozone employment increased for the eighteenth month in a row during April, with jobs growth improving at manufacturers and service providers alike. April data signalled a marginal increase in average input prices for the first time in four months.

“The final PMI data confirm the earlier flash estimate that the eurozone economy grew at a steady but unspectacular annual rate of 1.5% at the start of the second quarter. Prices charged also continued to fall, indicating that growth is being partly fuelled by price discounting." said Chris Williamson, Chief Economist at Markit.