Stock indices closed lower on a drop in shares in the auto sector and on mostly weaker than expected manufacturing and services purchasing managers’ indexes (PMI) from the Eurozone. Markit Economics released its preliminary manufacturing and services PMIs for the Eurozone on Friday. Eurozone’s preliminary manufacturing PMI declined to 51.5 in April from 51.6 in March. Analysts had expected the index to increase to 51.8.
Output in the manufacturing sector was moderate, new orders improved slightly, while input prices fell.
Eurozone’s preliminary services PMI increased to 53.2 in April from 53.1 in March. Analysts had expected the index to climb to 53.3.
Output in the services sector was moderate, new orders improved slightly, while input prices rose.
“The Eurozone economy remains stuck in a slow growth rut in April, with the PMI once again signalling GDP growth of just 0.3% at the start of the second quarter, broadly in line with the meagre pace of expansion seen now for a full year,” Markit’s Chief Economist Chris Williamson said.
“A failure of business expectations to revive following the ECB’s announcement of more aggressive stimulus in March is a major disappointment and suggests that the modest pace of growth is unlikely to accelerate in coming months,” he added.
Germany’s preliminary manufacturing PMI climbed to 51.9 in April from 50.7 in March, beating forecasts of a rise to 51.0.
The rise in the manufacturing PMI was driven by a stronger demand from foreign markets.
Germany’s preliminary services PMI was down to 54.6 in April from 55.1 in March. Analysts had expected index to increase to 55.2.
France’s preliminary manufacturing PMI dropped to 48.3 in April from 49.6 in March. Analysts had expected the index to rise to 49.8. The manufacturing index was driven by declines in output, new orders, employment and input prices.
France’s preliminary services PMI climbed to 50.8 in April from 49.9 in March. Analysts had expected the index to increase to 50.2. The services index was driven by rises in output, new orders, employment and input prices.
Indexes on the close:
Name Price Change Change %
FTSE 100 6,310.44 -71.00 -1.11 %
DAX 10,373.49 -62.24 -0.60 %
CAC 40 4,569.66 -13.17 -0.29 %
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