Business confidence in the euro area agrees on the American trade war

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Business confidence in the eurozone decreased in April after the tariff ads enjoyed by US President Donald Trump, in the first clear sign that the trade war began to withdraw the economy.

Flash appreciation for the purchasing managers index in the eurozone in Hamburg, which was collected by the S& P Global, on Wednesday that work confidence has decreased to its lowest level since November 2022 and much lower than a long -term average. In the UK, the Procurement Manager Index decreased sharply from what was expected.

“The decrease in confidence was widespread, both in terms of sector and geography,” according to the estimate of the flash, which is the first survey of the so -called “Liberation Day” in early April when he said that he would impose a 20 percent tariff rate on European goods that were exported to the United States. Since then it has reduced the rate to 10 percent for 90 days to allow negotiations with the European Union.

The European Central Bank last week reduced interest rates for the seventh time from June to 2.25 percent, noting “exceptional uncertainty” and deteriorating expectations for growth on “increasing commercial tensions”. Traders and analysts expect the European Central Bank to continue to reduce borrowing costs in June.

The total economic activity in the euro area decreased in April, as the project manager in the Euro complex complex of HCOB decreased to 50.1 points from 50.9 in March, as it hovers over the 50 decisive threshold that separates the shrinkage from expansion.

“former The euro area Carsten Brzeski, the global president of Macro, wrote to the customer, adding that “a greater decrease in PMIS manufacturing next month”, optimism collapses and fears of inflation and stagnation.

Germany, the largest in Europe, returned to shrinkage lands, where the country participating managers index decreased to the lowest level in 49 months in 49.7 in April, a decrease from 51.3 in the previous month.

Manufacture is a little better than expected. “Instead of falling from Jurf, (manufacturers), it has already increased production for the second month in a row.

The S & P Global Flash UK PMI has decreased to its lowest level in 29 months at 48.2 in April from 51.5 in the previous month. This was less than 50.4 expectations by the Reuters economists.

Melanie Deepono, an overall economy in Pantheon, said that the data “shows clear signs of the front tariff”, noting the first rise in foreign manufacturing orders, which it said was driven by companies “stored before the potential higher higher trade rise. Definitions During the coming months. “

Additional reports from Valentina Rumi in London