Service sector

Services sector boosts Eurozone growth in April as slowdown in manufacturing continues

By Maria Martinez

April’s Purchasing Managers’ Index data highlighted the growing emergence of a two-speed economy in the euro zone, with faster growth in the services sector contrasting with a slowdown among manufacturers, said S&P Global.

The eurozone composite PMI rose to 55.8 in April from 54.9 in March, indicating the strongest expansion in economic activity since September 2021.

“The eurozone economy has shown surprising resilience in the face of the war between Ukraine and Russia, thanks to a further explosion in service sector activity as virus containment measures have eased further in April,” Chris Williamson, chief economist at S&P Global, said in a note.

The eurozone services PMI rose to 57.7 in April from 55.6 in March, signaling a thirteenth consecutive monthly expansion in services output.

According to Williamson, the Eurozone PMI data is consistent with GDP rising at a quarterly rate of around 0.7% at the start of the second quarter.

The acceleration in output growth seen in April was accompanied by a further spike in costs, which translated into a record rise in average prices charged for goods and services, S&P Global said.

Write to Maria Martinez at