Euro Area Flash PMI Dropped in April, Economy Continues to Expand at Moderate Pace
Euro area’s Markit flash PMI fell slightly to 53 in April from March’s 53.1, suggesting that the economy continues to grow just moderately. April’s flash index implies that the euro area’s economy growth in the beginning of Q2 is slightly slower than the first quarter’s and previous year’s average, noted Markit.
Growth in Eurozone’s services and manufacturing sectors moderated again, where both the sectors grew below the averages seen in Q1 2016. Meanwhile, new orders growth rebounded to a three-month high; however, it was a tad lower than the average of the past year. Job growth rose marginally in both goods and services sectors; however, they continued to be weak.
The total rise in employment was unsuccessful to match the job creation rate witnessed during the turn of the year, added Markit. Input prices grew for the first time in four months, but moderately. This shows service sector’s higher costs and weakening prices of manufacturing input, mainly because of certain strengthening of commodity prices.
However, average selling prices continued to decline as companies quite frequently offered discounts to increase sales. But the rate of drop alleviated, implying certain moderation in deflationary pressures.