Economic growth in the eurozone climbed to a seven-month high in April, as COVID-19 restrictions were eased during the period.
Source: Markit Economics
EZU is down 0.26%, and VGK is down by 0.50% premarket.
The Flash Eurozone PMI Composite Output Index climbed to 55.8 in April from 54.9 in March, marking the highest level since September 2021. This was attributed to the loosened restrictions, which drove the service sector higher.
The index for services grew to 57.7 from 55.6 the previous month, hitting an eight-month high. Business activity recorded the fastest growth rate since August 2021, similar to new business orders inched up to the highest since the same month.
The manufacturing output index slipped to 50.4 from 53.1 in March, recording the lowest level in 22 months. The manufacturing purchasing managers’ index declined to a 15-month low of 55.3 from 56.5 in March.
Firms recorded production cuts due to the ongoing supply constraints, with delivery times increasing. Disruptions also came due to the conflict between Russia and Ukraine, along with fresh lockdowns imposed in China.