The eurozone economy continued to grow in April, but at a slower pace, as demand has been weakened and the dominant sector of services remained almost stagnant, indicating that the recovery of the area remains fragile, according to a study by CNBC.

HCOB Eurozone Composite PMI Output Index, drawn up by S&P Global, fell to 50.4 from 50.9 in March. The measurement was just above the limit of 50 that separates growth from shrinkage.

“The growth of the eurozone slowed at the beginning of the second quarter, after a recovery in the first quarter of the year. The service sector, which is an important factor, has been in practice stagnant in April, “said Cyrus de la Rubia, head of Hamburg Commercial Bank economist.

The PMI Services index fell to 50.1 from 51.0 in March, to the lowest measurement of the last five months and just above the neutral limit.

Meanwhile, the optimism of the service businesses weakened and the business expectations index fell to 55.1 out of 57.8, at a low level not observed since the end of 2022.

The total demand was reduced for the 11th consecutive month and at a slightly faster pace than in March, as both manufacturers and service providers reported weaker sales. The new business index fell to 49.1 out of 49.5.

Export orders have also declined, though at the slowest pace of almost three years.

Despite lukewarm growth, employment across the block increased for a second month, although the increase was marginal and confined to the service sector.

Manufacturing operations reduced jobs for the 23rd consecutive month.