The IHS Markit Eurozone PMI Composite Output Index recorded 51.5 in April, compared to 51.6 in the previous month.
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The latest index reading was the lowest for three months, though a little firmer than the flash reading of 51.3.
Moreover, despite its modest level in April, by remaining above the 50.0 no-change mark, the index signalled that growth of the private sector economy has now been recorded continuously for nearly six years.
There remained notable differences in performance between the manufacturing and services sectors.
Whereas manufacturing production fell for a third successive month, service sector growth was sustained at a solid, albeit slower, rate.
The net increase in activity was again linked to higher levels of incoming new work, which rose modestly but at the best rate since last November.
Manufacturing new orders continued to fall markedly, in contrast to a solid uptick in services.
By country, it was in Ireland where the strongest increase in business activity was recorded, closely followed by Spain, although here growth was the weakest in seven months as political uncertainty led to the deferment of some spending decisions.
Germany was the only other nation to record a noticeable increase in activity.
France saw output stabilise, whilst there was a return to contraction for Italy followed last month’s expansion.
April’s survey data signalled the ongoing expansion of the private sector workforce in the euro area.
According to the latest figures, growth of employment was solid and stronger than in March.
Growth has now been recorded throughout the past four-and-a-half years, with April’s gains again driven by Germany, Spain and Ireland.
Relatively modest gains in employment were seen in France and Italy.
The addition of new employees again helped firms to keep on top of their existing workloads during April.
This was highlighted by a second successive monthly decline in levels of work outstanding held by euro area private sector companies.
Rising demand for staff, and an expanded workforce, helped drive average salary costs higher in April.
This helped to explain another net increase in firms’ overall operating expenses, with the degree of inflation accelerating since March to its historical trend level.
However, competitive pressures continued to weigh on pricing power, with average output charges rising in April at the slowest rate for 20 months.
Finally, business sentiment was unchanged since March.
Latest data again showed manufacturers recording a noticeably lower degree of sentiment about the future than their services counterparts. ■