Eurozone April PMI slumps; unemployment hits record high

Eurozone's manufacturing Purchase Managers Index (PMI) for April recorded its steepest fall in nearly three years, indicating the possibility of a continuing recession in the second quarter in the Eurozone, the most fragile region in the global economy. 

The Eurozone's April PMI registered a 34-month low of 45.9 down from 47.7 in March, signalling contraction for the ninth consecutive month. Production declines have been reported across all the big-four economies, Germany, France, Italy and Spain for the first time in the year.

The Eurozone manufacturing PMI is produced by Markit, a leading global financial information services company, based on original survey data collected from a representative panel of around 3,000 manufacturing firms and indicates overall business conditions.

A PMI value above 50 indicates growth, while an index below 50 represents a contraction in activities.

Weak demand and falling intra-Eurozone trade volumes are hurting both output and employment, the Markit release said.

Presenting the gloomy picture, Markit's chief economist Chris Williamson said, ''Manufacturing in the Eurozone took a further lurch deeper into a new recession in April, with the PMI suggesting that output fell at worryingly steep quarterly rate of over 2 per cent.''