ANKARA
The eurozone manufacturing sector kept growing in April, with the rate of expansion easing only slightly from March’s 10-month high, Markit Economics said in a statement Monday.
The Markit Purchasing Managers' Index fell to 52 in April from 52.2 in March. The index has remained in expansionary territory for 22 months, the statement said.
Growth was registered in most nations, but France and Greece were still mired in contraction, the statement said.
Germany's manufacturing Purchasing Managers' Index dropped to 52.1 in April from an 11-month high of 52.8 seen in March. The sector extended the current period of continuous growth to five months.
On the other hand, the French manufacturing Purchasing Managers' Index declined more than initially estimated in April. The index dropped to 48 from 48.8 in March. The latest reading pointed to an acceleration in the rate of deterioration.
“The eurozone manufacturing sector continued to grow in April, but the dip in the rate of expansion will serve to check recent optimism that the ECB’s quantitative easing program has bought a guaranteed ticket to recovery for the region.
“Warning lights are flashing particularly brightly over France and Greece, both of which saw accelerating rates of decline at the start of the second quarter. Weaker rates of growth in Germany and Ireland are also cause for concern," Chris Williamson, Markit’s chief economist, said.
But manufacturing Purchasing Managers' Index remains at a level consistent with euro area Gross Domestic Product rising at a quarterly rate of 0.4 percent, Williamson said.
Separately, data from the think tank Sentix showed that eurozone investor confidence weakened slightly in May. The investor confidence index fell to 19.6 in April from 20 in March, which was the highest score since August 2007. The expectations measure also fell to 26.5 in May from 31.5, the highest level since February 2006.
