PMI: Eurozone’s private functionality brushes paralysis in the middle of the duty negotiation | The economy
Private sector activities The old continent It was in the event that it was recognized at the beginning of the second quarter of 2025, to the level of stagnation Trade war. The primary data of the PMI indicator in April fell to 50.1 points – we think above the entrance to the growth of contraction – and fell eighteen tenth compared to the March. This is a weak progress in four months, according to companies contacted by S&P Global and Commercial Hamburg Bank (HCOB) to accelerate and prepare new orders in addition to the lowest level of business confidence in nearly two and a half years. Targa attacked by Trump and then 90 -day negotiation The so -called “mutual tariffs” for markets with commercial surplus such as the European Union (whose imports will impose a 20%rate), put this sector in suspense. This is in the event that the European Union promises more costs along with other things to strengthen its defense autonomy.
HCOB’s Chief Economist, Cyrus of the Blonde, pointed out The services sector Since its commercial activities have entered into an agreement, instead of maintaining an almost uninterrupted expansion path since February 2024, it is “a kind of carved”. Specifically, these services have pointed out the 49.7 -point advanced reading in April, which is a significant fall to the negative territory after the detection of 51 points in March.
Meanwhile, in spite of the normal tariffs and rates of 10%, the industry showed further resistance 25% of car imports Trump approved in early April. Although it is below the growth limit, the manufacture has reached 48.6 points in the previous month from 48.6 points, which is the best result in 27 months.
“Most of the euro zone manufacturers are not very fickle; instead of collapsing, the production of the second month in a row is increased,” he admitted from the blonde. He assured that the tonic benefit from the defense expenditure of the block, as well as the reduction of fuel prices due to the fears of recession in the United States, and described it as a “blessing to the sector”.
The two major economies of the eurozone, Germany and France have taken the block outcome, and the rest of the members have taken action, although with a slightly lower expansion rhythm in March. German Lokomotive experienced a decrease in business activities for the first time in four months in April, although the blonde, Great financial cost In the infrastructure planned by Berlin, “it benefits not only the industrial sector but also the services sector, although a little late.” The expert also “a steady risk of political fall in a Fragile debt situation”, Can explain the pronounced weakness in France.
Job and resting inflation
According to the Panorama of the entire activity, there were no major changes in employment and manufacturers continued to reduce purchases. Usually, despite the lack of employment, in April, the continuous fall of new orders has facilitated that companies can update pending orders in April, with this reading chain for twenty -five months. However, the final reduction is less than at least one year.
Inflation pressures, on the other hand, have declined, as the costs of supply and sales have increased to weak rates. European Central Bank in the blonde “is getting slight support for its location Cut type In price indicators in the services sector, monetary authorities are closely following. In the manufacturing sector, he warns that prices will show mixed behavior: the costs of inputs have been reversed and falling, but sales prices have risen slightly more than in March, but are still moderate.
