Preliminary April services PMI 52.9 vs 51.5 March (Il Sole 24 Ore Radiocor) - London , 23 Apr - The eurozone's purchasing managers' index for the manufacturing sector in April fell to a four-month low of 45.6 from 46.1 in March, while that for the services sector increased to an 11-month high of 52.9, up from 51.5 in March, according to preliminary data released by S&P Global and the Hamburg Commercial Bank.

The manufacturing PMI output index rose to 47.3 from 47.1 in March, a 12-month high. The composite PMI output index, a weighted average of manufacturing output and services PMI, was at an 11-month high of 51.4 against 50.3 the earlier month.

A reading below 50 signals contracting sector activity, while one above an expansion.

'The eurozone got off to a good start in the second quarter," said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank. "The Composite HCOB Flash PMI took a significant step into expansionary territory. This was propelled by the services sector, where activity has gathered further steam.

Considering various factors including the HCOB PMIs, our GDP forecast suggests a 0.3% expansion in the second quarter, matching the growth rate seen in the first quarter, both measured against the preceding quarter.

'Several factors indicate that the recovery in the private service sector, which dominates the entire economy, is poised to be sustained. Firstly, there has been a positive momentum in new business for the past two months, which translates also into a bolder hiring policy. Secondly, the higher increases in output prices are not only a response to the faster rise in input costs but also reflect the confidence of service providers in setting prices. Lastly, the recovery is occurring simultaneously in the two most significant economies of the Eurozone, Germany and France. This suggests the presence of common factors such as lower inflation and higher wages, which bolster purchasing power and contribute to the resurgence in the service sector.".

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(RADIOCOR) 23-04-24 10:27:01 (0289) 5 NNNN