The final data published by HCOB showed that activity in the eurozone private sector rose to an 11-month high in April, driven by the service sector. Business confidence remained strong, but inflationary pressures intensified during April.
The Eurozone Composite PMI Output Index, which assesses the change in activity in the manufacturing sector and the service sector, rose in April to 51.7 points from 50.3 points in March. Economists had expected an increase to 51.4 points. Meanwhile, services PMI reached 53.3 compared to 51.5 in March and forecasts at 52.9.
The data also showed that new orders in the private sector rose for the first time since May 2023, albeit slightly, as a sharper drop in demand for goods partially offset the growth of new orders in the service sector. Meanwhile, the number of new export orders declined for the 26th consecutive month. The rate of reduction in backlogs of work slowed for a third month in a row and was the weakest in a year. Looking ahead, companies in the eurozone were optimistic that activity levels would continue rising in the coming 12 months. The level of positive sentiment was only narrowly weaker than March’s 25-month peak. Private sector employment rose again in April, with the pace of growth being the strongest since mid-2023. After slowing in the previous month, increases in both input costs and output charges quickened and were above their respective series averages.