Eurozone flash manufacturing PMI arrives at 47.8 in April, EUR/USD tests 1.1250

The Eurozone manufacturing sector activity showed some improvement in the month of April, the latest manufacturing activity survey from IHS/Markit research showed.

The Eurozone manufacturing purchasing managers index (PMI) came in at a 2-month highs of 47.8 in April vs. 47.9 expected and 47.5 last while the services PMI fell sharply to 3-month lows of 52.5 vs. 53.3 last.

The IHS Markit Eurozone PMI Composite rose declined from 51.6 in March to 51.3 in April, hitting fresh 3-month lows.

Comments from Chris Williamson, Chief Business Economist at IHS Markit:

“The Eurozone economy started the second quarter on a disappointing footing, with the flash PMI falling to one of the lowest levels seen since 2014. The data add to worries that the economy has failed to rebound with any conviction from one-off factors that dampened activity late last year, and continues to show only very modest growth in the face of headwinds from slower global demand growth and subdued economic sentiment. “The surveys indicate that quarterly Eurozone GDP growth has slowed to just under 0.2%. A similar 0.2% rate of expansion is being signaled for Germany but France stagnated and the rest of the region has moved closer to stalling.”