The Composite Purchasing Manager Index (PMI) fell in April underlining that the growth momentum in the Euro area still is fragile. Confidence both in the services sector and the manufacturing sector dropped. The weaker outlook was visible in both Germany and France. Lower energy prices, the weaker EUR and ECB’s QE purchases continue to provide support to the still rather weak Euro area economy going forward.The Purchasing Manager Indices (PMIs) for April, giving us a first glimpse of what Q2 might look like, came in weaker than broadly expected.The loss of momentum was broad based, but the largest drop was seen in France. Confidence fell in both services and manufacturing. The new orders index took a hit and fell to 53.8. Confidence appears to have picked up in the smaller economies in the Euro Area, while the larger countries are struggling, at least temporarily.According to Nordea research, lower energy prices, the weaker EUR and ECB’s QE purchases continue to provide support to the still rather weak Euro area economy going forward. The current PMI levels continue to provide evidence of a frail economy recovering from a painful economic crisis.
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