Eurozone Economic Growth Slows in April Amid Weakness in Services Sector

The Eurozone economy recorded modest growth in April, but at a slower pace than the previous month, reflecting continued uncertainty—particularly due to a near-stagnation in the dominant services sector.

The Eurozone Composite Purchasing Managers’ Index (PMI), published by S&P Global, dropped to 50.4 from 50.9 in March. This reading remains slightly above the 50-point threshold that separates growth from contraction.

The services sector, a key component of the region’s economy, showed minimal expansion. Its PMI declined to 50.1 from 51 in March, marking the lowest level in five months. Business expectations also weakened, with the Future Activity Index falling to 55.1 from 57.8—the lowest since late 2022—indicating reduced confidence among service providers.

Overall demand declined for the eleventh consecutive month, with a slightly faster pace of contraction than in March. Both manufacturers and service providers experienced weaker sales. Export orders also fell, although at the slowest rate in nearly three years.