Euro area factory activity holds up in April, but services softens
By Alexander Bueso
Date: Wednesday 23 Apr 2025
(Sharecast News) - Economic activity in the single currency bloc continued to cool in April, as new orders fell more rapidly and weaker confidence in the outlook, preliminary survey results revealed.
Yet manufacturing was holding up better than anticipated and some economists were expecting services to benefit - albeit with a bit of a lag - from increased government spending on infrastructure in Germany and on defence across the continent.
The Hamburg Commercial Bank Eurozone composite Purchasing Managers' Index for output alone fell from 50.9 in March to 50.1 in April (consensus: 50.3).
However, another PMI index tracking output in manufacturing alone increased from 50.5 to 51.2 (consensus: 47.5).
A PMI for manufacturing activity in general also rose, from 48.6 to 48.7.
The services business activity on the other hand fell from 51.0 to 49.7 (consensus: 50.5).
Commenting on the latest survey results, Dr. Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, pointed out the fact that increases in selling prices had slowed significantly.
He also noted the stark contrast at present between France and Germany.
In the former, there was a constant risk of a government collapse due to the "fragile" debt situation, whilst in Germany the possibility existed for a functioning new government and "significant" fiscal leeway starting from May.
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