0940 GMT - The eurozone's rising services PMI for April suggests five quarters of relative stagnation in the bloc will come to an end, Commerzbank economist Christoph Weil says in a note. The picture is clouded, however, by the unexpected decline in the manufacturing component, contradicting the strong rebound that many economists had forecast for this year, he says. European Central Bank interest-rate hikes haven't been fully digested and upcoming rate cuts--expected from June--probably won't boost the economy until 2025, Weil says. But still, GDP data to be published next week will likely show the economy grew in the first quarter of 2024, and the overall PMI rise suggests the recovery will continue in the spring, he adds. (edward.frankl@wsj.com)
(END) Dow Jones Newswires
April 23, 2024 05:44 ET (09:44 GMT)
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