Summary
Business confidence in the Eurozone fell sharply in April, reaching its lowest level since November 2022, amidst rising trade tensions from Donald Trump’s tariff announcements. The Hamburg Commercial Bank’s composite Purchasing Managers’ Index (PMI) dropped to 50.1, indicating stagnation, with Germany’s PMI falling to 49.7, signaling contraction. The European Central Bank’s continued interest rate cuts reflect the deteriorating economic outlook, compounded by a slowdown in the service sector, despite unexpected strength in manufacturing.
