Eurozone April flash services PMI 47.4 vs 49.8 expected

AI Briefing

• – Eurozone services PMI drops into contraction territory for first time since 2024, fueled by supply chain delays and war in the Middle East, while manufacturing PMI shows modest jump due to frontloading on orders.
• – Eurozone inflation surges to highest in years, driven by input price inflation and commodity price increases, posing challenge for ECB
• – Business sentiment at lowest since 2022, with ECB facing tough decision on interest rates amid uncertain economic outlook