Eurozone Services PMI Slumps to 47.6, Composite to 48.8 in Contraction

Eurozone private-sector activity contracted sharply in April, with final Services PMI at a 62-month low of 47.6 (from 50.2) and Composite PMI at 48.8 (from 50.7), driven by Middle East energy shocks hammering consumer services despite manufacturing resilience. The story began on May 4 with manufacturing PMI hitting a 47-month high of 52.2 amid stockpiling, but May 6 data revealed Spain's services PMI surprise drop to 47.9 (vs 52.0 expected) and composite to 48.7, confirming broader weakness including steep falls in Germany and France. Surging inflation and plunging expectations signal downside risks for Europe 50 equities and ECB policy.