Business activity in eurozone manufacturing sector shows signs of stabilization in April

The Purchasing Managers' Index (PMI) for the manufacturing sector of the eurozone, compiled by S&P Global, rose to 49.0 in April, marking the strongest reading in more than 30 months. As Reuters journalists pointed out, such dynamics came as a surprise, given the numerous uncertainties and turmoil of recent months.

In the opinion of Cyrus de la Rubia from Hamburg Commercial Bank, the fourth consecutive monthly increase in the PMI index indicates stabilization of the situation in the EU manufacturing sector. However, the index is still below the level of 50 separating growth from contraction.

The output sub-index rose to 51.5 from 50.5 in March, hitting its highest level since March 2022. Meanwhile, the new orders indicator continued its decline, though at the slowest pace in three years. Export orders remained the main weakness.

Meanwhile, sentiment in the European business sphere fell to its lowest level since 2025, indicating continued caution among manufacturers.

As noted by Reuters, a composite PMI index that includes the services sector will be released this week and is expected to provide a more comprehensive picture of the state of the eurozone economy.