The final data published by HCOB showed that private sector activity continued to expand in April, but the pace of expansion slowed to a 2-month low. Soft demand conditions continued to limit the speed of growth, leaving companies to rely on backlogs of work as a means to drive output higher. Nevertheless, employment ticked up for a second consecutive month.
The eurozone composite PMI output index, which assesses the change in activity in the manufacturing sector and the service sector, fell to 50.4 points in April from 50.9 points in March. Economists had expected a decline to 50.1 points. An index value above 50 points indicates an expansion of activity in the sector. As for the eurozone countries, four countries posted growth in output. France remained the outlier, registering a contraction for the eighth month running. Ireland recorded the strongest increase in activity, but the expansion slowed on the month. Italy posted the fastest increase in 11 months, but trailed Spain’s upturn, despite growth there easing to a 15-month low. Germany’s private sector output barely rose in April.
Meanwhile, the eurozone services PMI reached 50.1 compared to 51.0 in March and forecasts at 49.7.
The data also showed that new orders in the private sector fell again in April, while the rate of decline accelerated compared to March. Clients in export markets were partly responsible for the contraction, although the pace of decline in new work from non-domestic sources was the least pronounced in almost three years. Workforce numbers across the eurozone rose again in April, but only slightly, while the backlogged orders fell for a 25th month in a row. Meanwhile, year-ahead expectations for activity were their weakest in 18 months, reflecting lower levels of positive sentiment at both manufacturers and service providers. As for the inflationary situation, input cost pressures eased to their weakest in five months, while output charges posted the slowest increase in 2025 so far.