MW:Euro-zone PMI signals weak start to second quarter
By William L. Watts
FRANKFURT (MarketWatch) -- April private-sector activity across the 17-nation euro zone continued to shrink at the same pace as March, with even Germany slipping into contraction, according to the preliminary Markit composite purchasing managers' index released Tuesday. The euro-zone composite PMI was unchanged at 46.5. Economists had forecast a reading of 46.4. A reading of less than 50 signals a contraction in activity. The euro-zone services PMI rose to a two-month high at 46.6, while the manufacturing PMI dropped to a four-month low at 46.5. Earlier, national PMI data showed the April composite reading for Germany, the euro zone's largest economy, dropped into contraction territory, hitting a six-month low of 48.8. "Although the PMI was unchanged in April, the survey is signaling a worrying weakness in the economy at the start of the second quarter, with signs that the downturn is more likely to intensify further in coming months rather than ease," said Chris Williamson, chief economist at Markit.
