The eurozone purchasing managers’ index, a composite index based on a survey of purchasing managers in the manufacturing and services industries, increased to 46.9 in April from 46.5 in March.

This means that manufacturing and services in the 17-nation euro block contracted for the 15th straight month as the region’s economy continues to be mired in a recession that has pushed the unemployment rate to a record high. While exceeding initial estimates of 46.5, this revised reading was below the 50 mark that divides expansion from contraction.

Separately, German Finance Minister Wolfgang Schauble, signalled support for easing of Europe’s austerity drive.

In the UK, industrial production rose more than forecast in March as the cold weather increased demand for gas and electricity. According to the Office of National Statistics, output rose 0.7 per cent from the prior month, when there was a gain of 0.9 per cent. A survey of economists by a Bloomberg News survey predicted a 0.2 per cent increase. For the first quarter as a whole, production rose 0.2 per cent, in line with estimates.

In the meantime, data compiled by Markit Economics showed that the UK services sector, which makes up three-quarters of the economy, unexpectedly expanded in April at its faster rate in eight months. In a separate move, the Bank of England left its stimulus programme unchanged as officials assess recent signs of economy’s strength.

Finally, in the US, data issued by the Labour Department show that the economy unexpectedly created 165,000 jobs in April, following an upwardly revised 138,000 in March. According to a Bloomberg News survey, a gain of 140,000 was expected. Revisions to the two previous months’ reports added a total of 114,000 jobs to the February and March employment figures.

The jobless rate slipped from 7.6 per cent in March to 7.5 per cent in April, that is, the lowest jobless rate since December 2008. In the meantime, orders placed with US factories fell more than expected in March.

This article was compiled by Bank of Valletta plc for general information purposes only.