Business activity in the euro zone expanded last month at the fastest pace in almost a year, a survey showed on Monday, as a revival in the euro zone's key services industry more than offset a deep downturn in manufacturing. Ta.
The Currency Union Purchasing Managers' Index (PMI) of Hamburg Commercial Bank (HCOB), compiled by S&P Global and considered to be an appropriate indicator of the overall economic health, was 51.7 in April and 50.3 in March. It rose from 2017 and exceeded the preliminary figure of 51.4.
This is the second month that the index has exceeded 50, which is the dividing line between growth and contraction, and the highest level since May last year.
Spain led the ranked countries with a 12-month high of 55.7.
Ireland was last of the five countries with a score of 50.4, but still recorded growth.
“Service providers have now expanded their activity for the third consecutive month, putting an end to the lack of dynamism seen in the second half of last year,” said Cyrus de la Rubia, chief economist at HCOB.
The services PMI rose to 53.3 from 51.5, exceeding the preliminary figure of 52.9 and the highest level since May last year.
A sister survey released last week showed that factory activity in the euro zone worsened in April, highlighting the disconnect between the two sectors.
Overall optimism about next year remains strong. The composite future production index was 61.6, only slightly down from 61.6 in March, the highest level since February 2022.
Services companies expect the recovery to continue, with the employment index rising from 52.3 to 53.5, increasing the number of employees at the fastest pace in nearly a year.
“Encouragingly, employment is growing at a faster pace, in line with new business growth and order book growth, which is the largest expansion in 11 months,” Dell'Albia added. Ta.
Separate data released on Monday showed investor confidence in the euro zone improved for the seventh consecutive month in May, hitting its highest level in more than two years.
The Eurozone's Centix index fell from -5.9 points in April to -3.6 points in May, the highest level since February 2022, and also exceeded the forecast of -5.0 points in a Reuters poll of analysts. exceeded.
“So the trend is moving in the right direction, even if it's a small step,” Sentix said. “The data situation is encouraging, as the economy appears to have somewhat digested the burdens of the past two years since the beginning of the Ukraine crisis.”
Centix said expectations for Germany were no longer negative for the first time since February 2022, but the situation index remained very weak at -33.5 points.
“Therefore, weak economic momentum is by no means 'self-sustaining'.” “We can only hope that German policymakers do not crush this delicate bud of hope again.”
In the euro area, the expectations index rose from 5.0 points in April to 7.8 points in May, marking the eighth consecutive month of increases and the highest level since February 2022.
The index showing the current situation in the euro area was -14.3 in May, up from -16.3 in April, marking the seventh consecutive month of increases.
The survey was conducted from May 2nd to May 4th among 1,178 investors.
- Additional coverage Reuters
