Last Monday, a survey showed that the eurozone economy barely made it out alive in the first quarter of 2019 with its declining growth rate. Euro Zone pinpoints to the manufacturing section as the weakness, severely affecting the dominance of the services industry.
The Final Purchasing Managers’ Index, or PMI, of Euro Zone Composite, went down from 51.6 during March to 51.5 this April. PMI is considered as a good way to measure economic stability.
Despite being higher than the 51.3 reading predicted, the PMI is still near the 50-point figure associated with growth. Chief Business Economist Chris Williamson shares that the survey is showing signs that the economy will grow 0.2% every quarter. However, manufacturing remains on the down end since 2013. The growth of the service sector also dipped.
During the first quarter, the economy made a strong showing by rising 0.4% according to official data. However, a poll by Thomson Reuters reveals that many expect the growth will slow down by 0.3%. The work index’s backlog was 48.6%, which was below the breakeven target. In March, the economy experienced a 48.2%, the lowest since 2016.
The PMI of the services industry went down from 53.3 to 52.8. Last week, a PMI from a factory revealed that activity made a contraction for the third straight month.