Latest PMI survey suggests Eurozone’s manufacturers are not feeling the economic recovery
Europe's manufacturing industry struggled for momentum last month, as the purchasing managers' index (PMI), which measures output in the sector, remained weak despite strong economic growth during the first quarter of the year.
The PMI – where scores above 50 indicate expansion – came in at 51.7, a slight increase on March's score of 51.6, though one of the weakest scores in the last year.
"The PMI has now edged higher for two successive months, but has improved only marginally from what was a worryingly low base earlier in the year," said Chris Williamson, chief economist at Markit, which compiles the data.
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Williamson said the "lacklustre" scores show there is still no evidence that a weaker euro or the European Central Bank (ECB)'s monetary stimulus is helping to revive the Eurozone's manufacturers.
France's manufacturing industry was the only one of the six Eurozone countries surveyed – France, Germany, Italy, Spain, Netherlands and Austria – to contract in April, according to the survey, registering a score of 48 – its lowest in 12 months.
"France remained a major concern," Markit's Williamson said, "with PMI signalling the steepest downturn for a year and exports showing the steepest slump for three years."
While input prices for manufacturers continued to fall during April, they did so at their slowest pace this year, suggesting that deflationary pressures could be easing.
Hiring also picked up by manufacturing firms, in a sign that the industry could be expecting growth to pick up over the rest of the year.
Nevertheless, Howard Archer of IHS Global said that weak PMI data "reinforces [the] believe that there will be a renewed slowdown in Eurozone GDP growth in the second quarter."