FX.co ★ Euro Area Services Activity Stagnates in April

In April 2025, the HCOB Eurozone Services PMI was adjusted upwards to 50.1 from an initial estimate of 49.7, following a previous reading of 51 in March. This indicates a near stagnation within the services sector after experiencing four consecutive months of growth. There was a significant decline in new orders, the steepest since November, along with a slight decrease in new export business. Companies continued to address their backlog, extending this trend of depletion for a full year. Despite these signs of diminishing capacity pressures, employment saw a modest increase. Input costs rose sharply, though the inflation rate cooled, reaching a five-month low. The pace of price increases charged was the slowest observed since October 2024. Furthermore, there was a continued decline in business confidence, marking the fourth consecutive month of waning expectations, with the level of positive sentiment falling to its lowest in nearly two and a half years.