Euro-zone April composite PMI posts steep fall (by William L. Watts)

FRANKFURT (MarketWatch) -- A contraction in private-sector business activity across the 17-nation euro zone accelerated sharply in April, according to the Markit composite purchasing managers' index, or PMI, released Friday. The index fell to 46.7 from 49.1 in March, coming in below an earlier estimate of 47.4. Markit said its April services PMI for the region fell to 46.9 from 49.2 in March and came in below the preliminary estimate of 47.9. A reading of less than 50 signals a contraction in activity. Chris Williamson, chief economist at Markit, said the data suggests the euro-zone is on track to see gross domestic product shrink by 0.5% in the second quarter. "Business and consumer confidence appears to have deteriorated markedly across the region since the uplift seen at the start of the year, suggesting that stimulus measures implemented by the European Central Bank have not had a lasting impact on the real economy," he said.