Eurozone Growth Edges Up for Ninth Month Running

06 May 2004

Manufacturing and services industries in the Eurozone -- the eight largest European economies (Austria, France, Germany, Greece, Ireland, Italy, Netherlands and Spain) within the twelve-nation euro currency area -- continued to blossom in April, the ninth consecutive month of growth.

According to the latest data from the Reuters Eurozone Composite Output Index, the area enjoyed continuing expansion of demand for goods and services, the index rising from 54.5 in March to 54.9 in April. (Any level above the 50 mark indicates growth.)

All three main indices continued their upward trend …

New Business
At a reading of 54.4, the Composite New Business Index rose slightly from 54.2 in March. Comfortably above the 50.0 fulcrum, the index registered a marked expansion of demand for goods and services, its ninth monthly increase in a row. Although the rate of growth improved marginally, it remained substantially below that indicated at the start of the year.

The Composite Prices Index rose from 58.7 in March to 60.9. Input costs have risen for nine consecutive months, with the rate of increase accelerating markedly over this period.

The decline in employment, albeit very modest, continued through April. The Composite Employment Index reached 49.1, up from 49.0 in March, to register for the second month running a slight easing in the rate of job losses.

The Eurozone Purchasing Managers Indexes are based on surveys carried out in Germany, France, Spain, Italy, Austria, Ireland, Greece and the Netherlands (with the addition of the non-Eurozone UK for consolidated EU data).

The survey covers over 5,500 manufacturing and services companies, together accounting 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