Eurozone services activity loses momentum again in April
Eurozone services activity slipped into contraction territory in April for the first time in nearly a year, as softer demand and a drop in export orders weighed on the bloc’s dominant sector, according to the latest survey data.
The services Purchasing Managers’ Index (PMI) fell sharply to 47.6 from 50.2 in March, marking a five-year low and coming in slightly above the flash estimate of 47.4. A reading below 50 signals contraction.
The decline highlights mounting pressure on consumer-oriented industries, with ongoing Middle East tensions dampening demand across the region. Survey data showed overall services demand shrinking at the fastest pace since October 2023, alongside a further deterioration in new export business. The new business index dropped to 46.5 from 48.6.
The slowdown in services dragged the eurozone’s composite PMI—covering both services and manufacturing—down to 48.8 from 50.7, a 17-month low in line with earlier estimates. The index has remained above the 50 threshold since late 2024, making the latest drop a notable shift in momentum.
Across the bloc’s крупнейшие economies, Germany, France, and Spain all reported contractions in private sector activity, with Germany and France posting their steepest declines in more than a year.
Business confidence in the services sector also weakened markedly, falling to its lowest level in three and a half years, as firms turned increasingly cautious on the outlook amid prolonged geopolitical uncertainty.
