LONDON, April 23 (Reuters) – Euro zone business activity grew at its fastest pace in almost a year in April, as a strong recovery in the services industry more than offset a slowdown in manufacturing sector, shows the HCOB/S&P Global survey of purchasing managers published Tuesday.
The composite “flash” PMI jumped to 51.4 this month, up from 50.3 in March and a consensus of 50.7.
This is the second consecutive reading of the index above the threshold of 50 which separates growth from a contraction in activity.
“The euro zone got off to a good start in the second quarter. The composite flash PMI index is showing clear expansion, thanks to the services sector whose activity has intensified,” said Cyrus de la Rubia, economist in head at the Hamburg Commercial Bank.
The “flash” services PMI rose to 52.9 from 51.5 last month, compared to a consensus of 51.8.
The “flash” manufacturing PMI, on the other hand, fell from 46.1 to 45.6 in April, below expectations for a reading of 46.6. The index has been below the threshold of 50 since mid-2022.
The sub-index measuring manufacturing production, however, increased from 47.1 in March to 47.3.
Demand also differs in each of the two sectors. The services sector new business subindex rose to an 11-month high of 52.1, while the manufacturing new orders index fell to a four-month low, to 43.8 compared to 46.0 in March.
Overall, optimism remains as payrolls grow at the fastest pace since June 2023. The composite employment index rose from 50.9 to 51.8 in April. (Report Jonathan Cable, French version Corentin Chappron, edited by Blandine Hénault)
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