MW:Euro-zone April composite PMI falls to 5-month low
By William L. Watts
FRANKFURT (MarketWatch) -- Business activity across the 17-nation euro zone contracted at a faster-than-expected pace in April, according to the preliminary purchasing managers' index, or PMI, readings released Monday by data firm Markit. Manufacturing PMI fell to 46.0, the lowest in 34 months, from 47.7 in March, defying economists' expectations for a rise to 48.1. A reading of less than 50 indicates a contraction in activity. Services PMI fell to a five-month low at 47.9 from 49.2 in March versus forecasts for a reading of 49.3. The composite PMI also fell to a five-month low at 47.4 from 49.1 in March. Economists had forecast a rise to 49.3. "The flash PMI signaled 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," said Chris Williamson, chief economist at Markit.
