PARIS — The eurozone economy expanded for a 22nd consecutive month in April, a private sector report showed on Thursday, but the modest pace of growth disappointed some analysts looking for more vigor resulting from the European Central Bank’s bond-buying program.
Purchasing managers across the 19-member euro currency zone reported growth in services and manufacturing, according to a survey conducted by Markit Economics, a data analysis firm. Markit said its composite output index slipped to 53.5 in April from 54.0 in March. A reading below 50 indicates contraction, while a number above that level suggests expansion.
The market consensus had been for a small increase in the index. The lackluster report might reflect concerns about the economic crisis in Greece, though the figure was still close to an 11-month high, said Jessica Hinds, an economist in London with Capital Economics.
She added that the April index level appeared consistent with quarterly economic growth of about 0.4 percent, or about 1.6 percent on an annualized basis.
Markit said the survey showed growth beyond France and Germany, the region’s two biggest economies, at the fastest pace since August 2007. The data showed Germany slowing slightly from what remains a relatively good pace and France still just above stagnation levels.
The eurozone bottomed out in early 2013, but it has grown since then at a pace far too low to remove the slack from the economy. The jobless rate in the region stands at 11.3 percent, dragging on household spending and leaving businesses loath to invest.
Complicating matters, Europe, like the United States and Japan, is suffering from historically low inflation, raising concern that the opposite phenomenon, deflation, will take hold.
The European Central Bank is seeking to stimulate the region’s economy through its quantitative easing policy, under which it has committed to buying up to 60 billion euros, or about $64 billion, of bonds each month through September 2016.
The program has contributed to the optimism in some quarters by helping to push down the euro against the dollar, raising the competitiveness of European exporters against their foreign counterparts. Low oil prices have delivered what is in effect a stimulus to consumers.
“The euro area economy seems now to be turning the corner,” Peter Praet, the central bank’s chief economist, said on Thursday in a speech to a conference in Berlin.
“Both the hard and soft data suggest that the activity is gathering momentum and looks set to strengthen over the course of this year.” Still, Mr. Praet warned that what is now occurring is “the beginnings of a cyclical recovery.” He added, “But it is not yet a structural one.”
nytimes.com
Purchasing managers across the 19-member euro currency zone reported growth in services and manufacturing, according to a survey conducted by Markit Economics, a data analysis firm. Markit said its composite output index slipped to 53.5 in April from 54.0 in March. A reading below 50 indicates contraction, while a number above that level suggests expansion.
The market consensus had been for a small increase in the index. The lackluster report might reflect concerns about the economic crisis in Greece, though the figure was still close to an 11-month high, said Jessica Hinds, an economist in London with Capital Economics.
She added that the April index level appeared consistent with quarterly economic growth of about 0.4 percent, or about 1.6 percent on an annualized basis.
Markit said the survey showed growth beyond France and Germany, the region’s two biggest economies, at the fastest pace since August 2007. The data showed Germany slowing slightly from what remains a relatively good pace and France still just above stagnation levels.
The eurozone bottomed out in early 2013, but it has grown since then at a pace far too low to remove the slack from the economy. The jobless rate in the region stands at 11.3 percent, dragging on household spending and leaving businesses loath to invest.
Complicating matters, Europe, like the United States and Japan, is suffering from historically low inflation, raising concern that the opposite phenomenon, deflation, will take hold.
The European Central Bank is seeking to stimulate the region’s economy through its quantitative easing policy, under which it has committed to buying up to 60 billion euros, or about $64 billion, of bonds each month through September 2016.
The program has contributed to the optimism in some quarters by helping to push down the euro against the dollar, raising the competitiveness of European exporters against their foreign counterparts. Low oil prices have delivered what is in effect a stimulus to consumers.
“The euro area economy seems now to be turning the corner,” Peter Praet, the central bank’s chief economist, said on Thursday in a speech to a conference in Berlin.
“Both the hard and soft data suggest that the activity is gathering momentum and looks set to strengthen over the course of this year.” Still, Mr. Praet warned that what is now occurring is “the beginnings of a cyclical recovery.” He added, “But it is not yet a structural one.”
nytimes.com
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