Euro Zone Business Growth Stalls Amid Service Sector Slump

Euro Zone Business Growth Stalls Amid Service Sector Slump Euro zone business growth has hit a standstill, according to a survey released on Wednesday. The report reveals a contraction in the service sector and a prolonged downturn in manufacturing. HCOB's preliminary composite euro zone Purchasing Managers' Index (PMI), compiled by S&P Global, slipped to 50.1 this month from March's 50.9, narrowly staying above the threshold that separates growth from contraction and falling short of median estimates.Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, described the service sector as a damper on the economy, saying, "The service sector has turned into a bit of a party pooper." Since February 2024, growth has been intermittent until it turned negative, leading to economic stagnation.The services PMI fell to 49.7 from 51.0, below the expected 50.5. Optimism among service enterprises declined with a fall in the business outlook index to 53.1 from 57.8, a level not seen since the early days of the COVID-19 pandemic. Conversely, manufacturing PMI inched up to a 27-month peak of 48.7, against forecasts for a decrease. Despite U.S. tariffs, manufacturers have increased production, though overall demand remains weak.

Euro zone business growth has hit a standstill, according to a survey released on Wednesday. The report reveals a contraction in the service sector and a prolonged downturn in manufacturing. HCOB's preliminary composite euro zone Purchasing Managers' Index (PMI), compiled by S&P Global, slipped to 50.

1 this month from March's 50.9, narrowly staying above the threshold that separates growth from contraction and falling short of median estimates. Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, described the service sector as a damper on the economy, saying, "The service sector has turned into a bit of a party pooper.

" Since February 2024, growth has been intermittent until it turned negative, leading to economic stagnation. The services PMI fell to 49.7 from 51.

0, below the expected 50.5. Optimism among service enterprises declined with a fall in the business outlook index to 53.

1 from 57.8, a level not seen since the early days of the COVID-19 pandemic. Conversely, manufacturing PMI inched up to a 27-month peak of 48.

7, against forecasts for a decrease. Despite U.S.

tariffs, manufacturers have increased production, though overall demand remains weak. (With inputs from agencies.).