The S&P Global Eurozone Composite PMI Output Index fell to 48.8 in April from 50.7 in March, dropping below the 50 mark for the first time in nearly one-and-a-half years. This indicates a modest contraction in overall private sector activity.

The slowdown was mainly driven by the services sector, where the PMI fell sharply to 47.6 from 50.2, marking the fastest decline in output since February 2021. Demand for services weakened further, with new business falling at the quickest pace since October 2023.

Among major economies, Germany, France, and Spain reported contractions, while Italy and Ireland continued to expand. The decline was particularly strong in the eurozone's largest economies.

Business confidence weakened significantly, falling to a 31-month low at the composite level and a 42-month low in the services sector. Firms cited uncertainty linked to the ongoing war in the Middle East and persistent inflation as key concerns.

Price pressures intensified, with input cost inflation reaching a 40-month high and output prices rising at the fastest pace in three years. Employment declined slightly overall, mainly due to job losses in manufacturing, while services employment remained stable.

Overall, the data highlights growing economic challenges, with weak demand and rising costs weighing on the eurozone outlook.

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