According to the first estimate, both euro zone manufacturing and services PMI weakened further at the start of the second quarter. In April, euro zone manufacturing PMI dropped from 47.7 to 46.0, reaching the lowest level since June 2009, while the consensus was looking for an increase to 48.1. French manufacturing PMI rebounded from 46.7 to 47.3, in line with expectations, while German manufacturing PMI was a real disappointment, falling from 48.4 to 46.3. This result poses question marks, as the most recent IFO survey reported an improvement. Euro zone services PMI fell from 49.2 to 47.9 in April, while a marginal improvement was expected. Weakness was based in France (46.4 from 50.1), while German services PMI rebounded from 52.1 to 52.6. Also the details are worrying with employment continuing to contract, while output fell at the fastest pace in five months. Expectations for growth over the coming year fell both in manufacturing and among services providers. These data provide a major blow to expectations that the euro zone economy would pick up in the second quarter. Both in the core countries and in the periphery growth weakened further in April, with prospects looking very bleak.