HCOB’s flash Composite Purchasing Managers’ Index (PMI) was released on Friday, surging to an 11-month high of 54.4 in April from March’s 53.7. The report, which is widely viewed as a trustworthy gauge of overall economic health, suggests that the eurozone’s economic recovery is accelerating at a quicker pace than expected.
Compiled by S&P Global, the report revealed that PMI covering the services industry hit 56.6 in April, in stark contrast to expectations in a Reuters poll for a decline to 54.5. While living expenses continued to rise in the eurozone, demand for services rose as consumers continued to spend.
Manufacturers, on the other hand, saw a faster decline in demand, with headline manufacturing PMI falling from 47.3 to 45.5. This is the lowest since the outbreak of the coronavirus pandemic in 2020.
“The HCOB Purchasing Managers’ Indices for the euro zone show a very friendly overall picture of an economy that continues to recover,” Cyrus de la Rubia, chief economist at Hamburg Commercial Bank observed before going on to warn that this growth is unevenly distributed.