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Germany’s HCOB Services PMI fell to 49.0 in April from 50.9 in March, slipping back into contraction territory. The Composite PMI also declined to 50.1 from 51.3, indicating slower overall private sector growth as service sector weakness offsets modest manufacturing resilience.

Italy’s economy showed solid momentum in April as the HCOB Services PMI rose to 52.9, beating the forecast of 51.3 and up from 52.0 in March. The Composite PMI also advanced to 52.1 from 50.5, indicating a stronger and broader economic expansion, mainly driven by service activity.

In April, Spanish unemployment fell by 67.4K, a strong improvement compared to the expected 6.5K increase, indicating continued labor market resilience. However, the HCOB Spain Services PMI dipped to 53.4, down from 54.7 in March and below the forecast of 53.9, suggesting slower expansion in the services sector.

France’s industrial production grew by just 0.2% in March, below expectations of 0.4% and down sharply from February’s 1.0% rise. The data suggests a loss of momentum in the country’s manufacturing sector amid ongoing eurozone economic uncertainties.

Switzerland’s seasonally adjusted unemployment rate remained unchanged at 2.8% in April, in line with expectations. The non-seasonally adjusted rate edged down slightly to 2.8% from 2.9%, reflecting a modest improvement in the labor market as the Swiss economy shows resilience.

Switzerland’s consumer price index (CPI) was unchanged in April, both monthly (0.0%) and annually (0.0%), marking a notable cooling from the 0.3% YoY seen in March. The data missed forecasts for a slight monthly rise of 0.2%, reinforcing expectations that the Swiss National Bank (SNB) may maintain a dovish stance amid subdued inflationary pressures.

The Eurozone unemployment rate remained steady at 6.2% in March, in line with the previous month but slightly above the forecast of 6.1%. Despite economic headwinds and weak industrial activity, the labor market continues to show resilience, supporting hopes for a gradual recovery in domestic demand.

Eurozone inflation data showed a firming in price pressures during April. Core CPI rose 1.0% MoM, matching the previous month, while the annual rate accelerated to 2.7%, up from 2.4% in March and above expectations of 2.5%.

Headline CPI held steady at 2.2% YoY and 0.6% MoM, suggesting overall inflation remains under control. The HICP excluding energy and food also climbed to 2.7% YoY and 0.9% MoM, indicating underlying price pressures are becoming more persistent.

The HCOB Eurozone Manufacturing PMI edged up to 49.0 in April from 48.6 in March, slightly above the expected 48.7. While the improvement suggests a gradual recovery in factory activity, the index remains below the 50 threshold, indicating the sector is still in contraction, though at a slower pace.

France’s economy grew 0.1% quarter-over-quarter in Q1 2025, matching expectations and rebounding from a -0.1% contraction in Q4. On an annual basis, GDP expanded by 0.8%, slightly above the forecasted 0.7% and consistent with the previous year’s growth. However, March consumer spending dropped sharply by -1.0%, missing forecasts of 0.0% and marking a significant decline from February’s -0.2%, raising concerns over household demand amid persistent economic uncertainty.

Germany’s Ifo Business Climate Index edged up to 86.9 in April from 86.7 in March, exceeding the forecast of 85.1. The Current Assessment also improved slightly to 86.4 (vs. 85.5 expected), while Business Expectations remained relatively strong at 87.4, despite a minor dip from the previous month’s 87.7.

These figures suggest cautious optimism among German firms, reflecting resilience in Europe’s largest economy amid global headwinds. The slight rebound may indicate expectations of a gradual economic recovery, although challenges such as weak demand and high borrowing costs persist.

The Eurozone Manufacturing PMI rose to 48.7 in April, showing slight improvement but remaining in contraction. The Services PMI fell to 49.7, dipping below the 50 growth threshold for the first time in months. Meanwhile, the Composite PMI barely held onto expansion territory at 50.1, signaling stagnation in the region's overall business activity.