Eurozone ZEW Survey and US Empire Manufacturing Index Signal Economic Pessimism in April

The Eurozone's ZEW Survey Expectations for April dropped significantly to -18.5, a sharp decline from the previous month's 39.8, indicating a more pessimistic outlook among economic analysts. In Germany, the ZEW Investor Expectations for April fell to -14.0, well below the estimated +10.0, while the current situation index improved slightly to -81.2 from -87.6. In the United States, the Empire Manufacturing Index for April showed a contraction, registering at -8.1, which was better than the forecasted -14.5 but still indicated ongoing economic challenges. The index had previously hit -20.0 in March. The survey highlighted a plunge in future expectations to levels not seen since the aftermath of the 9/11 attacks, with new orders and shipments reaching their lowest points since 2001. The 6-month ordering intentions also fell to the lowest reading in the history of the index, and the prices paid component jumped to 50.8, its highest level since 2022. The Eurozone's current account balance for February was reported at €34.285 billion, a decrease from the previous month's €35.400 billion. On a non-seasonally adjusted basis, the balance was €33.10 billion, up from €13.20 billion in the prior period. Italy's current account balance for February showed a deficit of €1.604 billion, an improvement from the previous month's €3.811 billion deficit. In the New York Fed's services sector survey, business activity in March was at -19.8, with a 6-month sentiment reaching levels only seen twice before in March 2020 and Q4 2008, and companies anticipating rising costs, declining pricing power, and a dramatic collapse in capital spending plans.