Euro Area economy contracts for first time in over a year

The Eurozone economy has contracted for the first time in over a year, with the S&P Global Eurozone Services PMI Business Activity Index dropping to 47.6 in April from 50.2 in March. This marks the fastest reduction in output since February 2021. The S&P Global Eurozone Composite PMI Output Index fell to 48.8, indicating a 17-month low. Chris Williamson from S&P Global Market Intelligence noted that the ongoing Middle East conflict is hindering recovery, suggesting a potential deepening of the downturn despite a modest 0.1% quarterly GDP decline so far.