Eurozone composite PMI in line in April

Markit’s final Eurozone composite output index came in at 53.0 in April, in line with the flash estimate but a touch lower than March’s 53.1.

Meanwhile, the final Eurozone services business activity index printed at 53.1, down a touch from the flash estimate of 53.2 but unchanged from March’s reading.

The ‘big-four’ nations – Spain, Germany, Italy and France – all reported expansions of economic activity in April, with Spain seeing the steepest rate of increase.

Output growth in Spain accelerated to a three-month high, despite a slower rate of increase for new business, while Italy saw a modest improvement in its rate of output expansion.

Germany posted a further solid increase in economic activity, although the pace of expansion disappointed by easing to an 11-month low, while the French economy expanded for the first time in three months in April, although the rate of growth was barely above the stagnation mark.

Markit’s chief economist, Chris Williamson, said: “While still tepid, the sustained Eurozone growth contrasts with slowdowns in the US and UK, suggesting the ECB’s more aggressive stimulus is helping to drive a steady recovery.

“The survey numbers also indicate that domestic demand within the Eurozone is picking up which, alongside the weaker currency, is helping to offset sluggish external demand.”

Claus Vistesen, chief Eurozone economist at Pantheon Macroeconomics, said: “The PMI points to stable growth in euro area, but also indicates that growth in the hitherto resilient services sector is slowing slightly.”