Eurozone Private-Sector Activity Deteriorates

2026-05-06 08:15 By Andre Joaquim 1 min. read

The S&P Global Eurozone Composite PMI fell to 48.8 in April of 2026 from 50.7 in the previous month, revised marginally higher from the preliminary estimate of 48.6 but remaining firmly below the initial market expectations of 50.2.

It marked the first contraction in the EA private-sector activity in 16 months, reflecting a somewhat delayed impact on the services sector (47.6 vs 50.2 in March) from the war in Iran as higher energy costs weighed on consumer demand, enough to offset higher activity for manufacturers (52.3 vs 52).

The contrast was consistent with swings for new orders and contracts, which contracted for services but expanded for goods producers.

Private-sector employment dropped slightly, but the fall was contrastingly led by manufacturers.

Input cost inflation at the aggregate surged to a 40-month high due to the increase in energy costs from the war in the Middle East, driving both sectors to increase their output charges.

Consistently, business confidence deteriorated.



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Eurozone Private-Sector Activity Deteriorates
The S&P Global Eurozone Composite PMI fell to 48.8 in April of 2026 from 50.7 in the previous month, revised marginally higher from the preliminary estimate of 48.6 but remaining firmly below the initial market expectations of 50.2. It marked the first contraction in the EA private-sector activity in 16 months, reflecting a somewhat delayed impact on the services sector (47.6 vs 50.2 in March) from the war in Iran as higher energy costs weighed on consumer demand, enough to offset higher activity for manufacturers (52.3 vs 52). The contrast was consistent with swings for new orders and contracts, which contracted for services but expanded for goods producers. Private-sector employment dropped slightly, but the fall was contrastingly led by manufacturers. Input cost inflation at the aggregate surged to a 40-month high due to the increase in energy costs from the war in the Middle East, driving both sectors to increase their output charges. Consistently, business confidence deteriorated.
2026-05-06
Eurozone Private Sector Contracts Most in 17 Months
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.
2026-04-23
Eurozone Growth Slows in March as War and Inflation Bite
The S&P Global Eurozone Composite PMI was revised up slightly to 50.7 in March 2026 (from a flash estimate of 50.5), but remained below February’s 51.9, signaling the weakest private-sector expansion since June 2025. The slowdown reflects a mix of soaring energy prices, disrupted supply chains, financial market turbulence, and slumping demand, all exacerbated by the Middle East war. Service sector activity stagnated, while manufacturing output held firm. However, new orders fell, with export demand weakening further, and backlogs of work shrank at the slowest pace since October 2025. Employment cuts accelerated to a 13-month high, as businesses faced mounting pressures. On the inflation front, input costs surged to a three-year peak, and output price inflation hit its highest level since February 2024. Meanwhile, business confidence slumped to its lowest in almost a year.
2026-04-07