FX.co ★ Eurozone Private Sector Activity Expands for 4th Month

The HCOB Eurozone Composite PMI slightly declined to 50.4 in April 2025 from 50.9 in March, but it was adjusted upward from an initial estimate of 50.1 and surpassed initial market forecasts of 50.3. This marks the fourth consecutive month of growth in the private sector activity within the Eurozone. The services sector was the primary driver of this growth, managing to maintain expansion levels (50.1 compared to 51 in March) against expectations of contraction. Meanwhile, the manufacturing sector experienced a milder contraction (49 compared to 48.6). For the eleventh month running, new orders decreased due to ongoing global economic challenges such as the U.S.'s trade conflict with China and its ripple effects on the EU. Despite these conditions, the manufacturing sector still managed to expand its production, and businesses continued hiring at a broad level. Regarding pricing, cost pressures eased to their lowest in five months, and output charges recorded the smallest increase for the year. Looking forward, concerns about tariffs and slowing growth have caused business confidence and activity expectations to plummet to their lowest in 18 months.