The final data provided by HCOB showed that activity in the eurozone manufacturing sector declined slightly in April, reaching a 4-month low. Meanwhile, business confidence rose to its highest level since February 2022.
Manufacturing PMI fell to 45.7 points from 46.1 points in March. The index remains below 50 points, which indicates a reduction in activity in the sector, since July 2022. Economists had expected the index to fall to 45.6 points.
HCOB said that the manufacturing production fell again in April, but the rate of decline slowed to an annual low. A shallower drop in output came despite overall factory orders decreasing at an accelerated pace. The fall in total sales was marked and the sharpest in the year-to-date. New orders from abroad also declined at a faster rate. The data also pointed to further job cuts in April, but the pace of contraction was the weakest in 7 months. In addition, April saw the decline in purchasing activity strengthened. Stocks of inputs were also reduced, and to an extent that was slightly stronger than seen on average across the current 15-month period of inventory drawdowns. As for the inflationary situation, purchase prices fell at the weakest pace since March 2023, while selling prices declined for the 12th month in a row.