European economic activity has slowed in April

The European economic activity has slowed in April 2015, which is a signal that monetary easing by the European Central Bank through its program for the purchase of covered bonds will need some time before it will start to strengthening the fragile economic recovery in the region. The Joint Managers’ Index for industry sales and service decreased from 54 points in March to 53.5% in April, so the industrial activity in the Eurozone declined to a two-month minimum. The index remains well above the value of 50 points, which separates expansion from contraction, but below expectations of analysts for 54.4 points.

While ECB President Mario Draghi has already found some positive effects ofEUR 1.1 trillion EUR from the program for the purchase of bonds, he also pointed out that the economic recovery in the region would not be sustainable without reforms by governments. ECB forecasts for economic growth in the Eurozone by 1.5% this year and 2.1% in 2017.

The index for the services sector declined from 54.2 points in March to 53.7 points in April. The index for the manufacturing industry declined from 52.2 to 51.9 points.

The French manufacturing index declined to below the limit of expansion – to 48.4 points. The index for services fell to 50.8 points. Month earlier data were 48.8 and 52.4 points respectively, and analysts had expected improvement.

German data are also disappointing – from 54.4 to 51.9 points and services for the industry to respectively 55.4 and 52.8 points in March. In the rest of the euro area economic activity is enhanced with the most serious pace of August 2007.