The eurozone economy registered marginal growth at the start of the second quarter of 2025, as soft demand and a stagnating services sector weighed on overall performance, according to the latest HCOB PMI data compiled by S&P Global. The seasonally adjusted HCOB Eurozone Composite PMI Output Index fell from 50.9 in March to 50.4 in April, remaining just above the 50.0 threshold that signals growth. April marked the fourth consecutive month of expansion, though at a notably subdued pace, well below the long-term average. Growth was largely driven by manufacturing, which posted its fastest output increase since March 2022. The services sector came close to stagnation, with its business activity index slipping to 50.1 from 51.0. New orders fell for the eleventh straight month, while export demand declined at the slowest rate in nearly three years. Among eurozone countries, France remained in contraction for the eighth month, while Ireland led growth despite a slowdown. Italy recorded its fastest rise in nearly a year, slightly trailing Spain, whose expansion moderated to a 15-month low. Germany's private sector output barely increased. Weak demand continued to force businesses to rely on backlogs to maintain output. Outstanding work volumes fell for the 25th consecutive month, yet employment edged up for a second month, entirely supported by the services sector. Manufacturing jobs declined for the 23rd month in a row. Business confidence fell sharply, with year-ahead expectations dropping to an 18-month low across both manufacturing and services. Price pressures continued to ease, with input cost inflation slowing to a five-month low and output charges rising at the weakest pace in 2025 to date. Sentiment in the services sector deteriorated for the fourth month running, reaching its lowest level in nearly two and a half years. Attribution: Amwal Al Ghad English Subediting: M. S. Salama
