Eurozone economic growth remains in the doldrums with outlook among businesses across the bloc the 'gloomiest' since 2014
- Eurozone economy only expected to grow by around 1% this year
- Export order levels down and demand from potential customers is weak
- Manufacturing and service sectors struggling, with France a 'drag' on results
The eurozone is suffering its worst spell of growth since 2014, with both the service and manufacturing sectors stagnating.
Export order levels have fallen 'sharply' so far this month, demand from potential customers remains sluggish and the outlook among businesses within the eurozone in the 'gloomiest' since late 2014.
The IHS Markit eurozone purchasing managers' index fell from 51.6 in March to 51.3 this month, according to a preliminary 'flash' estimate. A reading of 50 or above indicates growth.
![Sluggish: The eurozone is suffering its worst spell of growth since 2014, new survey results show](https://i.dailymail.co.uk/1s/2019/04/18/11/12427712-6935813-image-m-41_1555582172378.jpg)
Sluggish: The eurozone is suffering its worst spell of growth since 2014, new survey results show
'A solid service sector performance in Germany helped sustain the expansion, offsetting a sharp manufacturing downturn', the survey said.
The latest reading was the third-lowest since November 2014 and marginally above the recent lows seen in December and January.
By country, France was again a 'drag on overall eurozone performance', with business activity showing no change and new business inflows dropping for a fifth straight month.
Chris Williamson, chief business economist at IHS Markit said: 'The eurozone economy started the second quarter on a disappointing footing, with the flash PMI falling to one of the lowest levels seen since 2014.
![Disappointing: Chris Williamson, chief business economist at IHS Markit said, 'The eurozone economy started the second quarter on a disappointing footing'](https://i.dailymail.co.uk/1s/2019/04/18/11/12427840-6935813-image-a-59_1555582593531.jpg)
Disappointing: Chris Williamson, chief business economist at IHS Markit said, 'The eurozone economy started the second quarter on a disappointing footing'
'The data add to worries that the economy has failed to rebound with any conviction from one-off factors that dampened activity late last year, and continues to show only very modest growth in the face of headwinds from slower global demand growth and subdued economic sentiment.
'The surveys indicate that quarterly eurozone GDP growth has slowed to just under 0.2%.
'A similar 0.2% rate of expansion is being signalled for Germany but France stagnated and the rest of the region has moved closer to stalling.'
He added: 'Manufacturing remained the key area of concern, with output continuing to contract at one of the fastest rates seen over the past six years.
'The slowdown also showed further signs of engulfing the service sector, where growth cooled again to one of the weakest rates seen since 2016.'
Mr Williams said the survey's results suggests the eurozone's economy may struggle to grow by any more than 1 per cent this year.
New order growth across the eurozone picked up only marginally, remaining close to 'stagnant', while new orders fell sharply, as did new export orders.
In the face of weakening demand from customers, many firms working in key industries across the eurozone are also tightening their hiring practices. In the last week, employment growth picked up slightly but remained among the lowest since 2016.
Manufacturing output fell for a third month in a row, with new orders down for the seventh consecutive month.
![Country variations: By country, France was again a 'drag on overall eurozone performance'](https://i.dailymail.co.uk/1s/2019/04/18/11/12427906-6935813-Country_variations_By_country_France_was_again_a_drag_on_overall-a-58_1555582581079.jpg)
Country variations: By country, France was again a 'drag on overall eurozone performance'
Meanwhile, service sector growth has cooled from March's four-month high. With the exception of the recent soft patch seen in December and January, the expansion was the weakest since September 2016, IHS Markit said.
'The euro area outlook is challenging to say the least, and the ECB remains tilted towards further easing measures,' said Jan von Gerich at Nordea e-Markets.
A week ago, European Central Bank President Mario Draghi raised the prospect of more support for the struggling eurozone economy if its slowdown persists.
Neil Wilson, chief market analyst at Markets.com, said: 'Overall, we see a further slowdown in Eurozone growth.
![Support: A week ago, European Central Bank President Mario Draghi raised the prospect of more support for the struggling eurozone economy if its slowdown persists](https://i.dailymail.co.uk/1s/2019/04/18/11/12427928-6935813-image-m-57_1555582507518.jpg)
Support: A week ago, European Central Bank President Mario Draghi raised the prospect of more support for the struggling eurozone economy if its slowdown persists
'France is stagnating and growth across the bloc is at its slowest since 2013. These are not good times for the European economy, reflected by one of the gloomiest business expectations numbers in five years.
'All it does it raise the prospect of further easing from the ECB in due course. We await to see what the June meeting results in, but with policymakers keeping all options open further deterioration in the macro data would likely necessitate a return to QE before the end of 2019. The ECB is in a jam for sure.'
On the currency markets front, Mr Wilson said: 'EURUSD slipped beneath the Apr 11th low at 1.1250, where it has found support for now, but may well bring the prior April lows at 1.1230 into view, which sits near enough on the 61.8% retracement of the rally from below 1.12 since the start of April.'
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