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• Prior was 46.6

Key findings:

• Output nearly stabilises, having declined in the 12 months prior to April
• Softest contraction in new orders in over a year
• Cost pressures cool further, but charge inflation intensifies

Comment:

Commenting on the PMI data, Dr. Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, said:

“This appears to indicate stabilisation, despite US tariff policy. After declining almost continuously since April 2024,
production has now almost reached the 50 mark, signalling that production is roughly at the same level as in the previous
month. The turnaround also seems to be emerging in terms of new orders, where the decline is significantly milder than in
previous months. This aligns with the fact that inventories of pre-production goods were reduced only slightly.

“Given the improved survey results, growth is once again within the realm of possibility. However, after the sector has been
in recession almost continuously since mid-2022, Italian industry will have to work its way out of a rather deep hole. There
will still be a number of obstacles along the way, chief among them the US tariff policy and the threat of intensified
competition from China, which will push even more products onto the European market than before.

“Higher tariffs and uncertainty are weighing on Italian industry, which is reflected in the below-average optimism of
manufacturers. However, a more severe slump in sentiment could well have been expected. The fact that the PMI figures
signal stabilisation rather than a sharp deterioration may have something to do with the fact that industry is still benefiting
from some advance deals designed to circumvent higher tariffs. In addition, the defence industry is likely to see higher
demand for defence equipment, which should have a knock-on effect on the entire manufacturing sector.”

This article was written by Giuseppe Dellamotta at www.forexlive.com.

• Prior 48.9

That’s a fresh setback to the Swiss industry, with the reading seeing a steeper decline in activity compared to March. While output picked up a little, new orders slumped heavily and was a drag alongside a hit to employment conditions. The breakdown:

This article was written by Justin Low at www.forexlive.com.

• Prior was 49.5

Key findings:

• Steepest cut in new orders since December 2023
• Output down modestly for first time since last August
• Confidence in outlook deteriorates

Comment:

Commenting on the PMI data, Jonas Feldhusen, Junior Economist at Hamburg Commercial Bank, said:

“Operating conditions in Spain’s Manufacturing Sector are deteriorating. The HCOB Manufacturing PMI stays in the
contraction zone for the third consecutive month and has even deteriorated compared to the previous month. This result is
underpinned by a decline in output, for the first time since August 2024, and a significant deterioration in order volumes.
Panellists report increased uncertainty and market instability, prompting customers to delay or cancel purchasing and
investment decisions. The instability of international markets is attributed to US tariff policies and the uncertainty that
accompanies it.

“The decline in sentiment has not yet impacted employment levels. For four months, the employment index has signalled
little change. Given the poorer order situation and a reduction in backlogs, there is room for a deterioration in employment
levels in the coming months. Against this backdrop, business expectations of Spanish manufacturers also weakened in April.

“Price dynamics in Spain’s manufacturing sector have nearly come to a halt at the start of the second quarter. Input price
inflation has further weakened, as some vendors were forced to lower their prices due to weak demand. Pricing power for
customer prices was also limited, attributed to high competitive pressures and discounts to attract clients.

“For the first time this year, all sub-sectors – consumer, intermediate, and investment goods – are in the contraction zone.
The decline in intermediate goods was the most pronounced. Production there was cut, orders collapsed, and consequently,
business expectations plummeted. The consumer goods sector also declined but performed relatively better. Despite
weaker operating conditions overall, employment growth in this sector continues.”

This article was written by Giuseppe Dellamotta at www.forexlive.com.

Bloomberg have the info on China considering trade talks.

• China Commerce Ministry says the US has taken the initiative to convey to China that the US is hoping to talk on trade

• China said to be conducting assessment on US trade negotiations
• Also wants the US to correct its tariff mistakes, says the US unilaterally initiated the tariff trade war
• China is urging the US to demonstrate sincerity if it wants trade talks
• China is evaluating possible US trade talks
• China says the door is open to trade talks with the US

China obviously acting coy, but at least this is some sign of tentative progress.

Or, perhaps not ….. more:

• In any possible dialogue, meeting, if US does not correct its ‘unilateral’ tariff measures, US has no sincerity at all
• US should show sincerity if it wants to talk

• US should be prepared to take action in correcting ‘erroneous’ practices, cancelling unilateral tariffs

This article was written by Eamonn Sheridan at www.forexlive.com.

Earnings from PayPal and Block revealed diverging paths in peer-to-peer payments, with Venmo accelerating and Cash App losing steam.

Shell’s earnings come as Big Oil’s profits continue to fall from record highs in 2022.

The about-face is as a “structural turning point” for the sector, aimed at not only combating tariffs, but also promoting domestic consumption, analysts say.