Euro zone business activity slipped in April, a closely watched survey has showed, and the outlook remains gloomy despite major stimulus measures from the European Central Bank.
Data monitoring company Markit said its April Composite Purchasing Managers Index (PMI) inched down to 53.0 points from a revised 53.1 points in March, and pointed to France as a major brake on the region's recovery.
The PMI measures companies' readiness to spend on their business and so gives a good idea of how the underlying economy is doing.
The reading was however still above the 50-point boom-or-bust line, showing the 19-nation euro zone continued to expand at a modest pace.
But this was well short of what was expected after the European Central Bank launched a massive stimulus programme early last year.
"The euro zone economy remains stuck in a slow growth rut in April," said Chris Williamson, chief economist at Markit.
"France continues to act as a major drag on the region, with goods exports slumping to the greatest extent for over three years," he added.
The data meanwhile showed that Germany and the rest of the euro zone were enjoying more robust growth by comparison, though at a slower rate.
"The current lower level of the PMI suggests that growth might actually have slowed," said Jack Allen, European economist at Capital Economics.
Crucially, "the survey suggests that the euro zone's economic recovery is still too slow to generate much upward pressure on inflation" in a setback for the ECB.
ECB head Mario Draghi yesterday dismissed criticism of its monetary policy, insisting its benefits would take time to be felt.
