Eurozone manufacturing showed more signs of stabilisation in April
[LONDON] Eurozone manufacturing output grew at the fastest pace in just over three years in April despite overall factory activity remaining in contraction territory, with the big three economies showing signs of improvement, a survey showed on Friday (May 2).
HCOB's eurozone final headline manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, rose to 49 in April from 48.6 in March, marking its highest level in 32 months but remaining below the 50 mark separating growth from contraction.
'A fourth consecutive increase in the HCOB PMI can be seen as a sign that the situation in the manufacturing sector is stabilising. This comes as a surprise given the many uncertainties and shocks of recent months,' said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.
The output sub-index climbed to 51.5 from March's 50.5, its highest since March 2022, indicating a second consecutive month of production growth despite weak demand.
New orders continued to fall but at their slowest pace in three years, nearly stabilising with the sub-index approaching the neutral 50 threshold at 49.5.
Export markets remained the primary weakness, with overseas orders declining more sharply than overall new business.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
Germany, France and Italy – the bloc's largest economies – all showed improvements, though their PMIs remained in contraction territory. Greece topped the table with a reading of 53.2, followed by Ireland at 53, while Austria languished at the bottom with 46.6.
'The near stabilisation of the industrial economy was helped by a production pick-up in both Germany and France in April, and Italy is fighting its way back into expansion territory,' de la Rubia added.
Factory employment fell for the 23rd consecutive month, although the rate of job shedding was the slowest since June.
Manufacturers managed to increase their profit margins as input costs declined for the first time since November while output prices rose at their fastest rate in two years.
The survey showed business confidence weakened to its lowest level in 2025 so far, signalling persistent caution among factory operators despite improving production trends.
A composite PMI, which includes the larger services sector and will be released next week, is expected to provide a more complete picture of the eurozone economy's health. REUTERS
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
14 minutes ago
- Business Times
US: Stocks advance as China trade talks drag on
[NEW YORK] Wall Street stocks advanced on Tuesday as markets hoped for progress in US-China trade talks while digesting the World Bank's lowered economic growth forecast. A second day of high-level talks between the United States and China in London stretched into the evening on Tuesday without any concrete announcement. FHN Financial's Chris Low pointed to upbeat comments from Commerce Secretary Howard Lutnick, while also noting that 'there was a TikTok channel associated with Chinese television suggesting that there are still some significant differences between the two sides.' The Dow Jones Industrial Average finished up 0.3 per cent at 42,866.87. The broad-based S&P 500 climbed 0.6 per cent to 6,038.81, while the tech-rich Nasdaq Composite Index also gained 0.6 per cent to 19,715.00. The negotiations aim to keep the world's biggest two economies on course for an accord after each side earlier this spring imposed draconian tariffs on each other. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Citing trade tensions and the resulting policy uncertainty, the World Bank lowered its 2025 projection for global GDP growth to 2.3 per cent in its latest economic prospects report, down from 2.7 per cent expected in January. Global growth and inflation prospects for this year and next have worsened because of 'high levels of policy uncertainty and this growing fragmentation of trade relations,' said World Bank Group chief economist Indermit Gill. 'Without a swift course correction, the harm to living standards could be deep,' Gill added. Investors will get a fresh reading on US inflation Wednesday with release of consumer price index data. Among individual companies, Disney rose 2.7 per cent after disclosing that it reached an agreement on the pricing of NBC Universal's 33 per cent stake in Hulu, resolving a years-long appraisal process. Disney will pay an additional US$438.7 million for the stake. The transaction is expected to close on or before July 24. Tesla shot up 5.7 per cent on anticipation of the company's upcoming launch of self-driving vehicles in Texas. The electric vehicle company teased the introduction on Musk's X social media platform. Chip giant Intel surged 8.0 per cent on optimism about the company's new technology. AFP
Straits Times
2 hours ago
- Straits Times
US stocks advance as China trade talks drag on
Traders working on the floor of the New York Stock Exchange, in New York City. PHOTO: REUTERS US stocks advance as China trade talks drag on NEW YORK - Wall Street stocks advanced on June 10 as markets hoped for progress in US-China trade talks while digesting the World Bank's lowered economic growth forecast. A second day of high-level talks between the United States and China in London stretched into the evening on June 10 without any concrete announcement. FHN Financial's Chris Low pointed to upbeat comments from Commerce Secretary Howard Lutnick, while also noting that 'there was a TikTok channel associated with Chinese television suggesting that there are still some significant differences between the two sides.' The Dow Jones Industrial Average finished up 0.3 per cent at 42,866.87. The broad-based S&P 500 climbed 0.6 per cent to 6,038.81, while the tech-rich Nasdaq Composite Index also gained 0.6 per cent to 19,715.00. The negotiations aim to keep the world's biggest two economies on course for an accord after each side earlier this spring imposed draconian tariffs on each other. Citing trade tensions and the resulting policy uncertainty, the World Bank lowered its 2025 projection for global GDP growth to 2.3 per cent in its latest economic prospects report, down from 2.7 per cent expected in January. Global growth and inflation prospects for this year and next have worsened because of 'high levels of policy uncertainty and this growing fragmentation of trade relations,' said World Bank Group chief economist Indermit Gill. 'Without a swift course correction, the harm to living standards could be deep,' Gill added. Investors will get a fresh reading on US inflation on June 11 with release of consumer price index data. Among individual companies, Disney rose 2.7 per cent after disclosing that it reached an agreement on the pricing of NBC Universal's 33 per cent stake in Hulu, resolving a years-long appraisal process. Disney will pay an additional US$438.7 million (S$564 million) for the stake. The transaction is expected to close on or before July 24. Tesla shot up 5.7 per cent on anticipation of the company's upcoming launch of self-driving vehicles in Texas. The electric vehicle company teased the introduction on Musk's X social media platform. Chip giant Intel surged 8 per cent on optimism about the company's new technology. AFP Join ST's Telegram channel and get the latest breaking news delivered to you.
Business Times
9 hours ago
- Business Times
US: Wall St muted at open as US-China trade talks in focus
[NEW YORK] Wall Street's main indexes opened subdued on Tuesday (Jun 10) as investors awaited the outcome of ongoing trade talks between the United States and China aimed at cooling a tariff dispute that has bruised global markets this year. The Dow Jones Industrial Average fell 23.5 points, or 0.05 per cent, at the open to 42,738.27. The S&P 500 rose 4.0 points, or 0.07 per cent, at the open to 6,009.91, while the Nasdaq Composite rose 28.9 points, or 0.15 per cent, to 19,620.108 at the opening bell. REUTERS
