Business
Eurozone Economy Stalls in April as Services Sector Contracts Amid Trade Tensions

Economic activity in the eurozone came to a near standstill in April as heightened trade tensions and uncertainty weighed heavily on the services sector, according to newly released data from S&P Global’s Purchasing Managers’ Index (PMI).
The Composite PMI for the 20-nation bloc dropped to 50.1 in April from 50.9 in March, barely remaining above the 50-point threshold that separates growth from contraction. The decline reflects mounting concerns over global trade, particularly fresh tariffs introduced by the United States, and fragile consumer confidence within Europe.
A deeper look into the data reveals a widening gap between sectors. The services PMI fell into contraction territory for the first time in five months, slipping to 49.7 from 51 in March. Meanwhile, the manufacturing sector showed modest improvement, rising to 48.7 from 46.1—surpassing expectations and suggesting some resilience among producers.
Across the eurozone, business confidence dipped sharply, with survey respondents voicing growing concerns over tariffs, the broader economic outlook, and delays in customer decision-making. Sentiment is now at its lowest since November 2022.
Germany’s Manufacturing Holds Ground Amid Services Slump
In Germany, the bloc’s largest economy, the Composite PMI fell to 49.7 from 51.3 in March, with the services sector suffering the most. The German Services PMI dropped to 48.8, reflecting client caution and trade-related uncertainty.
However, manufacturing showed signs of stabilization, aided by falling energy costs and a rare rise in export orders. “Most manufacturers are weathering the new tariffs better than expected,” said Dr. Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank. “Production increased for the second consecutive month, indicating cautious momentum.”
France’s Downturn Deepens
In contrast, France’s economy continued its downward slide, with the Composite PMI falling to 47.3 in April from 48 in March. The services sector led the decline with a reading of 46.8, while manufacturing showed only minor improvement at 48.2.
“Demand, especially domestically, is weakening,” said Jonas Feldhusen, Junior Economist at Hamburg Commercial Bank. “The service sector is under considerable strain, and companies have responded by cutting staff.”
Feldhusen added that political instability and fiscal challenges are compounding France’s economic struggles, warning of ongoing pressure in the months ahead.
Inflation Slows, Supporting ECB Policy Shift
Despite the economic headwinds, inflation data offered some encouragement for the European Central Bank. Input costs rose at their slowest pace since November 2024, and output price inflation eased to a five-month low. Analysts believe this could strengthen the ECB’s case for further rate cuts, with some expecting up to three more reductions in 2025.
“With inflation pressures cooling, there’s more room for policy easing,” said de la Rubia. “We may see more targeted fiscal expansion, especially in areas like defense and infrastructure, which could help lift both manufacturing and services later in the year.”
The April data underscores the eurozone’s fragile recovery path, with analysts urging close monitoring of trade developments and domestic fiscal measures.
Business
China and Europe Drive Global EV Growth as U.S. Market Stalls Amid Policy Uncertainty

Global sales of electric and plug-in hybrid vehicles continued to surge in April, driven by strong performance in China and Europe, despite a slowdown in North America, according to new data released Wednesday by EV research firm Rho Motion.
Worldwide, electric vehicle (EV) sales reached 1.5 million units in April, a 29% increase compared to the same month in 2024. However, this figure marked a 12% decline from March, indicating a monthly dip in momentum. From January to April, EV sales totaled 5.6 million units — a 29% rise year-on-year.
Europe and China were the key drivers of growth. Sales in Europe jumped by 35% in April, with China close behind at 32%. Meanwhile, the rest of the world saw an even stronger April growth rate of 51%. In contrast, North American sales declined by 5.6% during the same period.
“Tariff negotiations are dominating headlines, but quietly, domestic manufacturers in China and the EU are growing market share,” said Charles Lester, Data Manager at Rho Motion. “The EU is the standout performer in 2025, as emissions targets have ignited a rapid industry transition to electric.”
From January to April, China posted a 35% increase in EV sales compared to the previous year. Europe followed with 25%, while North America saw more modest growth at just 5%.
Experts point to political developments as a key factor shaping the market’s trajectory. “EV adoption is accelerating — but politics, not technology, will decide who leads and who lags,” said Professor Christian Brand, a transport and energy expert at Oxford University.
In the U.S., uncertainty over the future of green tax incentives under President Trump’s administration is causing hesitation. Legislation under review would eliminate the current $7,500 federal tax credit for EV purchases by the end of 2026 and limit eligibility further. Tax breaks for commercial and second-hand EVs could also be scrapped.
Meanwhile, China is rolling out new consumer incentives to stimulate its slowing economy. Buyers trading in older vehicles for new EVs are now eligible for subsidies worth 20,000 yuan (€2,471), further boosting demand.
Trump’s 25% tariffs on imported vehicles and components have complicated matters for automakers with global supply chains. While recent executive orders offer some tariff relief, industry leaders remain concerned about profitability and dampened consumer sentiment.
Despite the policy divide, more than one in four cars sold globally this year is expected to be electric, according to the International Energy Agency.
“The shift to EVs is a gradual evolution, not a revolution,” said Brand. “It’s not just about switching engines — it’s about reshaping entire industries.”
Business
Microsoft Lays Off 6,000 Employees Amid Strategic Shift and AI Investment Drive

Microsoft has begun laying off approximately 6,000 employees, accounting for nearly 3% of its global workforce, in what is its largest round of job cuts in over two years. The company cited organizational restructuring as the reason behind the move, which comes despite strong quarterly earnings and ongoing investment in artificial intelligence (AI) infrastructure.
The layoffs began Tuesday and span various departments, teams, and global regions, though many of the affected roles are concentrated in Microsoft’s home state of Washington. The company notified state officials that 1,985 jobs would be cut at its Redmond headquarters, with most of those roles tied to software engineering and product management.
“This is a day with a lot of tears,” wrote Scott Hanselman, a Microsoft vice president, on LinkedIn, where several affected employees and company leaders shared news of the layoffs. “These are people with dreams and rent and I love them and I want them to be OK.”
The cuts affect units across the company, including the Xbox gaming division and LinkedIn, the professional networking platform owned by Microsoft. The company stated that the layoffs would impact workers at all levels but are particularly focused on reducing management layers to enhance organizational efficiency.
The move follows Microsoft’s earlier announcement in January of smaller, performance-based layoffs. This latest round is the largest since early 2023, when the company cut 10,000 positions in the wake of pandemic-era overhiring.
Microsoft Chief Financial Officer Amy Hood indicated during an April earnings call that while the company’s headcount had increased 2% year-over-year by March, it had slightly declined compared to the end of 2024. Hood emphasized the company’s aim to “increase agility by reducing layers with fewer managers.”
The restructuring comes as Microsoft intensifies its investment in AI technology, with an estimated $80 billion allocated for AI-related infrastructure, including data centers, in the current fiscal year. However, analysts suggest that while AI may influence how Microsoft operates, the layoffs are more reflective of strategic realignment than automation-driven job replacement.
“Big tech companies have trimmed their workforces as they rearrange their strategies and pull back from aggressive hiring during the early post-pandemic years,” said Daniel Zhao, an economist at Glassdoor.
With economic uncertainties looming and consumer spending patterns shifting, experts say Microsoft’s decision could also reflect a cautious approach to longer-term planning amid geopolitical and market fluctuations.
Laid-off employees in Washington have been informed their final day will be in July.
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