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Eurozone Services Sector Slides to Multi-Year Low
(MENAFN) The services industry across the euro area saw a steep decline in April, with the Purchasing Managers’ Index (PMI) dropping to its weakest level in 62 months, based on figures published by S&P Global on Wednesday.
The eurozone services PMI slipped to 47.6 in April, down from 50.2 in March. Meanwhile, the composite PMI—covering both manufacturing and services—declined to 48.8 from 50.7, reaching its lowest point in 17 months.
Economists had forecast slightly different readings, expecting the composite PMI at 48.6 and the services PMI at 47.4. The latest figures suggest that the eurozone economy contracted for the first time since December 2024, as inflationary pressures persisted and consumer prices climbed at their fastest rate in three years.
The downturn was mainly driven by weakness in the services sector, especially industries linked to consumer spending. Rising energy costs and disruptions in travel further dampened demand across the region.
A PMI reading above 50 indicates growth in economic activity, whereas a figure below 50 signals contraction.
The eurozone services PMI slipped to 47.6 in April, down from 50.2 in March. Meanwhile, the composite PMI—covering both manufacturing and services—declined to 48.8 from 50.7, reaching its lowest point in 17 months.
Economists had forecast slightly different readings, expecting the composite PMI at 48.6 and the services PMI at 47.4. The latest figures suggest that the eurozone economy contracted for the first time since December 2024, as inflationary pressures persisted and consumer prices climbed at their fastest rate in three years.
The downturn was mainly driven by weakness in the services sector, especially industries linked to consumer spending. Rising energy costs and disruptions in travel further dampened demand across the region.
A PMI reading above 50 indicates growth in economic activity, whereas a figure below 50 signals contraction.
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