Eurozone Business Activity Unexpectedly Contracts in April
The S&P Global Composite PMI fell to 48.6 this month as the conflict in the Middle East dampened demand. Services activity sank while manufacturing saw growth.
The Eurozone composite PMI fell to 48.6 in April, signaling a contraction as conflict-driven energy costs suppressed regional demand. The reading dropped from 50.7 in March, missing the 50.1 median forecast in a Reuters poll. Rising price pressures now force the European Central Bank to weigh recession risks against four expected interest rate hikes.
### Services Slump Offsets Manufacturing Gains The services sector drove the downturn as the index sank to 47.4 from 50.2 in March. Demand for services fell at its fastest rate since October 2023, while the new business index dropped to 46.3. This contraction followed heightened geopolitical tension involving the United States, Israel, and Iran.
