According to the report from IHS Markit, the coronavirus disease 2019 (COVID-19) pandemic continued to have a severe impact on the eurozone private sector economy during April. This was highlighted by the Eurozone PMI Composite Output Index which fell to a new series low in April of 13.6, down from March's previous record of 29.7.

Reflective of the ongoing restrictions to non essential economic activities in place across the region, the severe and unprecedented contraction in activity was replicated at the sector level. Both the manufacturing and services economies recorded record falls in output during April, with service providers again registering the sharper contraction.

With levels of incoming new business down so sharply, companies reported a steep and accelerated fall in backlogs of work in April. Levels of work outstanding have now declined for 14 successive months, with the latest contraction comfortably the greatest in the series history. Job losses mounted during April, with overall employment down for a second successive month.

April's survey showed that business expectations about the year ahead were little-changed on March's survey record low. Many companies signalled ongoing worries over the longer-term impact of the COVID-19 outbreak on demand and activity.

Finally, prices data showed marked reductions in company operating costs and charges. Lower prices for goods and services linked to oil, alongside reduced employment costs, pushed operating expenses down at the fastest rate since July 2009. Average output charges were cut at the sharpest pace in nearly 11 years.