Eurozone manufacturing outlook deteriorates in April

Markit purchasing manager's index data showed that Eurozone manufacturing contracted more sharply in April, as the index for the currency bloc fell from 46.8 to 46.7 (a figure below 50 implies a contraction).

The numbers reported were better than analysts had anticipated, but a fall in Germany from 49 to 48.1 (a more drastic decline to 47.9) was predicted is bad news for the Eurozone as a whole.

Chris Williamson, chief economist at Markit said:

The fact that the Eurozone Manufacturing PMI came in slightly higher than its flash reading offers little consolation to the fact that the index fell further in April, and suggests that the industrial sector is contracting at a quarterly rate of 0.5% at the start of the second quarter.