Eurozone Economic Growth Hits 14-Month High in April

07 May 2002

Key findings for April:

• The Reuters Eurozone Composite Output Index rose from 52.7 in March to 53.2 in April, signalling the third consecutive month of rising output following five months of decline. The rate of increase in April was the fastest since February 2001 and reflected accelerating growth in both manufacturing and services sectors. The latest rise in the Output Index represents a marked contrast to the steep rate of decline signalled late last year (the Index bottomed out at 45.2 last October).

• The Reuters Eurozone Composite New Business Index rose for the sixth month running in April, up from 52.4 in March to 53.2. New business levels have now risen for three consecutive months, having fallen throughout the previous ten months. April’s survey continued to register falling employment levels as firms sought to reduce costs and boost productivity in the uncertain economic climate.

• Finally, the Reuters Eurozone Composite Prices Index rose from 54.7 in March to a fourteen-month high of 56.9 in April, thereby registering the fourth consecutive monthly rise in average input costs following three months of falling costs during the final quarter of last year.

The Report on Eurozone is a monthly publication, researched and published by NTC Research featuring original data from surveys of Eurozone purchasing executives in manufacturing and service sectors.

The Purchasing Managers’ Indices are designed to provide the earliest indication of business conditions in the Eurozone.

The data is supplied in conjunction with the purchasing associations of Europe, who are together represented by the European Council of Purchasing and Supply. It is based on surveys carried out in Germany, France, Spain, Italy, Austria, Ireland, Greece and the Netherlands (plus UK for the EU data), covering over 5,500 manufacturing and services companies. These nations together account for an estimated 92% of total Eurozone gross domestic product. Questions are asked about real events and are not opinion based.

Data sourced from: NTC Research; additional content by WARC staff