Eurozone manufacturing activity improved in April, but still shows weak performance

The final manufacturing BMI for April rose to 49.0 from 48.6 in the previous month, better than the preliminary reading of 48.7, according to a survey of purchasing managers conducted by S&P Global Market Intelligence and Hamburg Commercial Bank AG.

A BMI below 50 indicates a contraction in the economic activity under review, while a reading above 50 indicates an increase. The April reading was the highest in 32 months for the eurozone manufacturing BMI.

Greece and Ireland recorded readings above 50 in April, with readings of 53.2 and 53.0 respectively.

“The fourth consecutive increase in the manufacturing BMI can be interpreted as a sign of stabilization in the manufacturing sector. This is a surprise, given the many uncertainties and shocks of recent months. However, the situation remains fragile, as evidenced by the fact that the main index remains below the 50 threshold,”

– commented Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, on the survey results.