Few signs of turnaround for factory slump

Frankfurt: The eurozone’s manufacturing slump extended into a third month, with little to suggest that a turnaround is imminent.

A Purchasing Managers’ Index came in at 47.9 in April, up from March but still below the 50 level that would indicate expansion.

A gauge for factory output signals contraction at a quarterly rate of 1%, a major drag on an economy increasingly sustained by services.The 19-nation region grew 0.4% in the first quarter, more than economists predicted, supported by strong investment in Spain and buoyant consumer spending in France.

The European Central Bank has pinned its hopes on the economy recovering in the second half of the year.

Policy makers have indicated that updated forecasts in June will be key in determining the generosity of their new bank-lending program.

While new orders staged another sharp decline in April, there were also some encouraging signs. Manufacturers maintained their optimism that output growth will rebound in the next 12 months. Gauges of activity rose in all of the eurozone’s four biggest economies, even though the levels remained largely disappointing. — Bloomberg

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Next In Business News

KPMG to pay RM333mil to M’sian govt as 1MDB settlement, says Finance Ministry
China stocks down over 1% on Evergrande fallout fears
Tobacco firm Philip Morris seals deal for UK's Vectura with 75% support
Asian shares fall on Chinese developers' woes
Japan cuts economic view on weaker production, spending due to Covid revival
HK stocks drop 2% to 2021 low on Evergrande contagion fears
Indonesia's Telkom to pursue IPO of unit in Q4, plans spinoffs
Malaysia's Kimanis oil exports to fall on issue at Shell field
Oil prices extend gains after draw in U.S. stocks
Asian shares fall again, dollar drifts

Stories You'll Enjoy