Eurozone Private Sector Contracts Most in 17 Months

2026-04-23 08:11 By Andre Joaquim 1 min. read

The S&P Global Eurozone Composite PMI fell to 48.6 in April of 2026 from 50.7 in March, contrasting with expectations of 50.2 for the sharpest contraction in the bloc's private-sector activity since November of 2024.

The drop indicated a somewhat delayed impact on the services sector (47.4 vs 50.2 in March) from the war in Iran, as higher energy costs weighed on consumer demand.

Business activity for service providers dropped the most in five years, especially in Germany, due to its reliance on foreign feedstock for electricity generation.

In turn, the manufacturing sector posted an aggressive expansion (52.2 vs 52.0) despite the difficulty to source input goods.

Input costs at the aggregate level rose the most since the end of 2022, driving companies to increase output charges the most in three years.

Still, both sectors maintained their staffing levels broadly unchanged.

The fresh headwinds from the war drove business outlook to decline sharply.



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