Euro Zone Private Sector Implodes In April

Euro zone private sector activity sank at the fastest rate in five months in April, another sign of recession in the euro zone. The composite Purchasing Managers Index (PMI) compiled by research firm Markit fell to 47.4 points this month compared with 49.1 points in March.

A figure below the neutral 50-point line indicates contraction.

“The flash PMI signalled a faster rate of economic contraction in the euro zone during April, extending what appears to be a double-dip recession into a third consecutive quarter,” Markit chief economist Chris Williamson said.

“The situation deteriorated across the region. Germany saw growth weaken to near-stagnation, while France saw a worryingly steep downturn, linked in part to increased uncertainty due to the presidential elections,” he said.

“The rate of decline also regained momentum in the periphery, which will inevitably raise concerns about the impact of deficit-fighting austerity measures,” he added.

Despite their own weaknesses, Germany and France outperformed the rest of the region where output fell for the 11th month in a row and at the fastest pace in four months, according to the Markit data.