Eurozone PMI Manufacturing dropped from 56.5 to 55.3 in April, above expectation of 54.5. That’s the lowest level in 15 months. PMI Services rose from 55.6 to 57.7, above expectation of 55.0. That’s the highest level in 8 months. PMI Composite rose from 54.9 to 55.8, a 7-month high.
Chris Williamson, Chief Business Economist at S&P Global said:
“April saw a two-speed eurozone economy. Manufacturing came close to stalling due to ongoing supply constraints, rising prices and signs of spending being hit by risk aversion due to the war. However, April also saw manufacturers suffer due to a shift in demand from goods to services amid looser pandemic restrictions, most notably via a record surge in spending on activities such as travel and recreation.
“Common across both sectors, however, was a further surge in cost pressures, driven by soaring energy and raw material costs, as well as rising wages. Average prices charged for goods and services rose at an unprecedented rate in April as these higher costs were passed on to customers, sending a worrying signal that inflationary pressures continue to build.”
