BRUSSELS: Eurozone business activity slowed in April after hitting an 11-month high in March, denting hopes that a massive European Central Bank stimulus programme would give the economy a quick boost, a key survey showed Thursday.
The closely watched Markit Economics Composite Purchasing Managers Output Index (PMI) fell to 53.5 points in April from 54 points in March.
Although the report showed the economy holding well above the 50-point boom-or-bust line, Markit said many had hoped it would pick up further as the ECB's more than one trillion euro ($1.7 trillion) bond purchasing programme known as Quantitative Easing (QE) took effect.
"The weaker rate of expansion is a big disappointment, given widespread expectations that the ECB's Quantitative Easing will have boosted the fledgling recovery seen at the start of the year," Markit chief economist Chris Williamson said.
"However, it's too early to draw firm conclusions about whether growth is faltering again and the effectiveness of policy," Williamson said.
He said the April slowdown reflected weaker activity in France and Germany, Europe's powerhouse economy, a worrying development, although to some extent offset by a better performance in periphery countries which returned to levels last seen in August 2007.
"The slowdown in April was ... a symptom of weaker expansions in both Germany and France, with the latter suffering a near-stalling of growth led by an accelerating downturn of its manufacturing economy."
Concerns over Greece's future in the eurozone appeared to be dampening confidence while France's problems reflected "a longer-term malaise," he said.
The figures overall continued above the average for the first three months of the year and were consistent with economic growth of 0.4 percent in the second quarter, he added.
The 19-nation eurozone economy expanded a better-than-expected 0.3 percent in the fourth quarter of 2014 after a 0.2 percent gain in the third.
First quarter growth data is due next month.
By component, the eurozone services sector PMI dropped to 53.7 points in April from 54.2 in March, with manufacturing slipping to 51.9 from 52.2.
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