Eurozone business growth was at its lowest level since 2014, a closely watched survey said on Thursday, dragged down by stagnation in France and a sluggish Germany. Beset by looming political risks such as Brexit and weaker global growth, the eurozone is struggling to keep the economy growing at a healthy pace, a survey from data firm IHS Markit showed.
The disappointing survey data indicates "that quarterly eurozone GDP growth has slowed to just under 0.2 percent," said Chris Williamson, an IHS Markit economist. "Manufacturing remained the key area of concern, with output continuing to contract at one of the fastest rates seen over the past six years," he added.
IHS Markit said its composite eurozone PMI fell to 51.3 points in April - a 3-month low - from 51.6 points in March. A reading above 50 points indicates an expansion, and the long-term trend appears to be heading towards stagnation.
While services remained in expansion, manufacturing in both France and Germany, which together count for half of the eurozone economy, were in contraction territory, IHS Markit said. The composite reading for France rose somewhat to 50.0 points, up from 48.9 points the previous month, an IHS statement said.