Euro Area Economic Activity Nearly Stagnates

2025-04-23 08:11 By Andre Joaquim 1 min. read

The HCOB Eurozone Composite PMI fell to 50.1 in April of 2025 from 50.9 in the previous month, slightly below market expectations of 50.3, but reflecting four straight months without a contraction in private sector activity, according to a flash estimate.

Firms signaled loose stability even though services activity swung lower (49.7 vs 51 in March) and manufacturing activity held at a contraction (48.7 vs 48.6), albeit the slowest in 27 months.

Businesses were held back by an eleventh consecutive month of fewer new orders, recorded in both sectors, tracking similar developments in other major economies across the globe as tariff threats by the US already drove firms to scrap for new supply lines.

In the meantime, employment stagnated as depleted backlogs of work limited the demand for new capacity.

In turn, input costs rose the least in five months, driving a similar move in output charges.

Looking forward, uncertainty on global trade policy lowered confidence to an over two-year low.



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