Businesses across the eurozone strolled into the second quarter, maintaining a still-solid but more modest growth rate than around the turn of the year, a survey showed yesterday.

Having peaked in January, growth has steadily slowed in the bloc as a strong currency and fears that a trade spat between China and the US could deepen affects demand and confidence.

IHS Markit’s composite flash Purchasing Managers’ Index (PMI) for the eurozone, seen as a good guide to economic health, held steady in April at March’s 14-month low of 55.2, defying a Reuters poll forecast of a fall to 54.9.

Earlier data showed improvements in Germany and France, the bloc’s two biggest economies and the only ones to publish flash readings.

“It’s a good reading, it’s still encouraging,” said Chris Williamson, chief business economist at IHS Markit, of the eurozone numbers. He said the PMI pointed to quarterly GDP growth of 0.6 per cent, matching the prediction in a Reuters poll.

“It’s very much suggestive of the ECB being in territory where it should be thinking about unwinding stimulus – and certainly not adding to it.”