The eurozone is beginning to emerge from an extended period of stagnation, with recent indicators showing a slight uptick in activity. The April Purchasing Managers’ Index (PMI), a key measure of economic dynamism, reached its highest level in eleven months, indicating a modest expansion of activity. However, the growth has been uneven across sectors, with services driving the growth while the manufacturing industry remains in contractionary territory.

Germany has returned to the growth zone for the first time in ten months, thanks to growth in services and a slower decline in manufacturing. France, on the other hand, is still in contractionary territory but gradually approaching positive growth. The employment situation has remained relatively stable, with unemployment rates at historic lows despite the stagnant economy.

Analysts predict a growth rate of 0.3% in the second quarter, which would mark a significant improvement for the eurozone. However, it remains to be seen if this is a true recovery or just a temporary improvement. Overall, the PMI data paints a reasonably optimistic picture of the eurozone economy and suggests a potential rebound in GDP growth in the coming months.