Financial News: Eurozone Private Sector Growth Accelerates In April

Eurozone Private Sector Growth Accelerates In April

(RTTNews) - The euro area private sector growth accelerated to an 11-month high in April driven by the service sector, final survey results from S&P Global showed on Monday.

The HCOB composite output index rose to 51.7 in April from 50.3 in the previous month. The flash estimate was 51.4.

The score was above the 50.0 mark which separates growth from contraction for the second straight month. The improvement was driven solely by the service sector as manufacturing output continued to fall.

Data showed that new orders increased for the first time since May last year as a steeper fall in demand for goods partially offset greater new business at service companies.

Backlogs of work were also a factor underpinning higher output levels. Further, companies were optimistic that activity will continue to rise over the coming twelve months.

Companies hired additional staff, extending the current period of job creation that started at the turn of the year. Moreover, the rate of growth was the sharpest since mid-2023.

Turning to price data, the survey signaled stronger inflationary pressures. Input costs and output charges increased and were above their respective series averages.

The HCOB services PMI advanced to 53.3 in April from 51.5 in March. The reading was above the preliminary estimate of 52.9. Overall, the increase pointed to the strongest expansion in services activity in just less than a year.

Spain was again the top-performing economy with growth rising to a one-year high. The composite output index climbed to 55.7 in April from 55.3 in the previous month. At the same time, the services PMI posted 56.2, up from 56.1 in March.

Despite a slowdown, Italy logged fourth straight month of expansion. The composite index came in at 52.6 compared to 53.5 in March. Similarly, the services PMI slid to 54.3 from 54.6 in the previous month.

Germany and France grew for the first time in ten and eleven months, respectively. Signaling a moderate growth, Germany's final HCOB composite output index posted 50.6, up from 47.7 in March and the initial score of 50.5.

At 53.2, the final services PMI rose to a 10-month high from 50.1 in March but remained slightly below the flash estimate of 53.3.

France's final composite PMI registered 50.5 in April. This was up from March's 48.3 and the flash reading of 49.9. The final services PMI advanced more than estimated to 51.3 from 48.3 in March. The initial score was 50.5.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2024 RTTNews.com. All Rights Reserved

Market News provided by RTTNews