Eurozone service sector slumps
The Eurozone’s vast services sector shrivelled at a much faster rate in April than initially thought, a business survey showed, suggesting that the bloc’s recession could extend through to mid-year.
The final reading of April’s Markit Eurozone Services PMI came in at 46.9, a full point lower than the preliminary reading of 47.9 reported two weeks ago, which itself was far weaker than any economist polled by Reuters had expected.
It was the steepest downward revision to the PMI since October 2008 – a month after Lehman Brothers collapsed – and a sharp fall from 49.2 in March. Anything below 50 signifies contraction.
Survey compiler Markit attributed the revision to business conditions worsening at a faster rate towards the end of the month, and said the figure was consistent with a 0.5 per cent quarterly rate of economic contraction.
“Little can be said to remain of any ‘core’ of strength in the region,” said Chris Williamson, chief economist at Markit.