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Eurozone private sector growth in April was the highest since July

Eurozone private sector activity experienced its strongest growth in April in nine months, thanks to strong industry performance, according to the Markit PMI index.

In April, the PMI advanced to 53.7 points, after being estimated at 53.2 in March, Markit said on Friday. A figure below 50 points indicates a contraction in activity, and above that limit it shows growth in activity.

For the chief economist of markets of Markit, Chris Williamson, “in a month in which the containment measures were increased by a new wave of the pandemic, the economy of the Eurozone showed a strength that allows us to be optimistic”.

The Markit study also found an incipient recovery in the services sector.

Although that segment continues to be “heavily hit by containment measures, it has returned to growth as companies adjust to living with the pandemic and prepare for better times in the future,” added the expert.

The study detected strong growth in demand for raw materials that has even led to delays in some supply chains.

This table generates some increases in costs and for this reason Williamson pointed out that “inflation of consumer prices may increase in the coming months.”

In its study focused only on the services segment, Markit had estimated a PMI of 49.6 points in March, in a retraction situation, although in April it calculated it at 50.3.

Bert Colijn, an economist at ING bank, pointed out that “the economy of the Eurozone seems to be approaching the point of exhibiting a spectacular recovery.”

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