Eurozone Business Activity Declines in April

The Flash Eurozone Composite PMI Output Index, a key indicator of the region's services and manufacturing business activity, registered a slight decrease to 50.1 in April from March's 50.9, marking a 4-month low, as per the preliminary report by S&P Global and Hamburg Commercial Bank (HCOB).

Service Sector Takes a Hit

Highlighting the downturn, the Flash Services PMI Business Activity Index dropped to 49.7 in April, a 1.3 point decline from March, reaching a 5-month low. In contrast, the manufacturing sector showed unexpected resilience.

Manufacturing Sector Shows Resilience

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 but increased production for the second consecutive month, surpassing March's figures.

"The service sector has turned into a bit of a party pooper," de la Rubia added, pointing to the contrasting fortunes of the two sectors.