Eurozone Business Activity Shows Mixed Signals in April

The Flash Eurozone Composite PMI Output Index, a key indicator of the region's services and manufacturing business activity, dipped to 50.1 in April from March's 50.9, marking a 4-month low. This preliminary data, released by S&P Global and Hamburg Commercial Bank (HCOB), highlights a nuanced picture of the Eurozone's economic health.

Services Sector Takes a Hit

April saw the Flash Services PMI Business Activity Index fall to 49.7, a 1.3-point drop from March, reaching a 5-month low. This decline in the services sector contrasts sharply with the resilience shown by manufacturing.

Manufacturing Sector Defies Expectations

Contrary to the services sector's struggles, the Flash Eurozone Manufacturing PMI reached a 27-month high at 48.7. "Manufacturing seems to be holding up better than expected," noted HCOB Chief Economist Cyrus de la Rubia. Despite new US tariffs, Eurozone manufacturers have not only sustained production but increased it for the second consecutive month, outperforming March's figures.

"The service sector has turned into a bit of a party pooper," de la Rubia added, underscoring the sector's unexpected downturn amidst broader economic resilience.