Euro-Zone Private Sector Unexpectedly Shrinks as Services Slump

Business activity in the euro area unexpectedly shrank for the first time since late 2024 due to a steep drop in the services sector as the Iran war weighs on consumers.

The Composite Purchasing Managers’ Index compiled by S&P Global declined to 48.6 in April from 50.7 the previous month, dropping below the 50 threshold separating growth from contraction. Analysts had predicted a dip to 50.1.