4-mth low (Il Sole 24 Ore Radiocor) - London, 02 May - In April, the eurozone's purchasing managers' index for the manufacturing sector fell to a four-month low of 45.7 from 46.1 in March, according to data released by S&P Global and Hamburg Commercial Bank.

But, the manufacturing PMI output increased to a 12-month high of 47.3 from 47.1 in March.

A reading above 50 signals expanding sector activity and a reading below 50 a contraction.

"What is going to rescue the eurozone economy? While this is a difficult question, one thing is clear: It's not the manufacturing sector. Instead, this sector is prolonging its drawn out recession into April. Output shrank at a similar pace as in the months before and companies have reduced their purchases at an accelerated rate. Compounding the issue, there is no sign of a turnaround in the inventory cycle, but instead we saw a sustained trend of depleting stockpiles of both purchased and final goods in April," said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.

'A plethora of evidence highlights the stark absence of demand, as evidenced by a rapid decline in new orders, unmatched in speed over the past four months and devoid of international support. Consequently, backlogs of work dwindled further. Concurrently, expedited delivery schedules by suppliers in April and over the preceding few months reveal abundant logistical capacity, a testament to the dearth of orders. This comprehensive snapshot portends a postponement of any semblance of recovery, likely extending well into the summer.".

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(RADIOCOR) 02-05-24 10:11:48 (0237) 5 NNNN