Eurozone economy grows at strongest pace in Apr 2023 since May 2022

In fact, growth strengthened to an 11-month high, signalling a further gaining of momentum following accelerated upturns in both February and March, S&P Global said in a release.

April’s robust increase in output solely reflected growth in services activity, however, as manufacturing production fell for the first time since January.

Similarly, a strong improvement in demand for services offset beleaguered manufacturing sector order books, which shrank again.

Inflationary pressures continued to subside and input price pressures, albeit still historically sharp, eased to a 26-month low in April. Output prices were subsequently lifted to the softest extent in two years.

Italy registered a strong upturn in April, with growth close to a one-and-a-half-year high. Stronger momentum was also seen in the euro area’s largest economy, Germany, which compared with a softer and modest expansion in France.

Supporting greater euro area business activity levels in April were improving demand conditions. New order inflows picked up for a third consecutive month, rising moderately and at the quickest pace since May 2022.

Higher new business, however, was limited to domestic sources, according to the latest survey data, as new export orders fell for a fourteenth month in a row. The decline in sales to foreign customers did ease, however, to the weakest in close to a year.

Fibre2Fashion News Desk (DS)