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Financial News: Eurozone Private Sector Growth Remains Stable In April

Eurozone Private Sector Growth Remains Stable In April

04/23/2018 - 04:13:00 (RTTNews)

(RTTNews) - Eurozone private sector expanded at a steady pace in April, flash survey results from IHS Markit showed Monday.

The composite output index remained unchanged at 55.2 in March. The score was forecast to drop to 55.0. A score above 50 indicates expansion in the private sector.

The unchanged reading indicated the joint-weakest expansion of business output since the start of 2017. The survey showed that lower inflows of new orders, alongside weakened optimism about the business outlook, suggests that growth could slow further in May.

The services Purchasing Managers' Index rose slightly to 55.0 from 54.9 a month ago. The score was forecast to drop marginally to 54.8.

On the other hand, the factory PMI fell to 56.0 from 56.6 in March. The reading came in line with expectations.

"The April data are running at a level broadly consistent with Eurozone GDP growth of approximately 0.6 percent at the start of the second quarter," Chris Williamson, chief business economist at IHS Markit, said.

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