2024-05-02 09:51:55
The fall in economic activity in the eurozone’s industrial production sector deepened in April on the back of subdued consumer demand, even as manufacturers cut prices for their output. This forces companies to lay off employees and workers, according to the results of a study prepared by the Hamburg Commercial Bank (Hamburg Commercial Bank – HCOB) and the consulting company Standard & Poor’s Global (S&P Global), reported Reuters, quoted by BTA.
The final value of the index, which reports the business sentiment of the supply managers in the manufacturing sector (PMI), decreased to 45.7 points in April from 46.1 points in March.
The indicator is below the level of 50 points, which is a sign of a decline in business activity in the industrial production sector in the euro area. However, it is above analysts’ forecasts for a level of 45.6 points in April.
The index, which reflects the volume of industrial production in the euro zone, rose to 47.3 points from 47.1 points in March, in line with forecasts. This is indicated by the preliminary data on the level of the indicator, which is seen as a good indicator of the economic condition of the Eurozone, according to Reuters.
However, the index remained below the 50-point mark that separates growth from contraction in economic activity, economists noted.
“What will save the eurozone economy? While this is a difficult question, one thing is clear: it is not the industrial production sector. And in April it remains in recession,” said Cyrus de la Rubia, chief economist at Hamburg Commercial bank”.
The gross domestic product of both the European Union and the euro area in particular increased by 0.3 percent in the first quarter of 2024 compared to the period October-December 2023. This is according to the data of the European statistical agency Eurostat, published on Tuesday. April 30.
This is a sign that the eurozone economy, if all sectors are taken into account, has recovered weakly from the mild recession it had been in, according to Reuters.