Eurozone Manufacturing Continues to Contract In April

Manufacturing activity in the eurozone continued to contract in April, albeit at a slower pace than in the previous month, according to a closely watched survey of industry executives, the Financial Times reported. The eurozone IHS Markit manufacturing index was revised to 47.9 on Thursday, up from a flash estimate of 47.8, which indicates that the majority of manufacturers reported a contraction in activity. However, this marked an improvement from the six-year low in March. “The manufacturing sector remained deep in decline at the start of the second quarter,” said Chris Williamson, chief business economist at IHS Markit. “Some encouragement can be gained from the PMIs having risen in all four largest euro member states in April, but it remains too early to call a turning point.” Both for Germany and Italy, April’s manufacturing purchasing managers’ index was better than in March and higher than the flash estimate. But they were still below the 50 mark, indicating a contraction. Read more