Eurozone manufacturing growth slows but prices rise

Eurozone manufacturing growth eased in April but factories raised prices for the first time in eight months, according to a survey that also showed headcount rose at the fastest pace in nearly four years.

Any signs of inflationary pressure will be welcomed by the European Central Bank, particularly as it only had a marginal impact on growth. Markit’s final April manufacturing Purchasing Manager’s Index (PMI) stood at 52.0, revised up from a flash reading of 51.9 but shy of March’s 10-month high of 52.2.

It was the 22nd month it has been above the 50 mark that separates growth from contraction. An index measuring output, which feeds into the Composite PMI due tomorrow, came in at 53.4, compared with March’s 10-month high of 53.6.