Euro area manufacturing contracts for 21st month in April

Euro-area manufacturing output contracted for a 21st straight month in April, adding to pressure on the European Central Bank to cut interest rates to spur lending and growth. A gauge of manufacturing in the 17-nation Euro area declined to 46.7 last month from 46.8 in March, London-based Markit Economics said today. That's above an initial estimate of 46.5 on April 23. A reading below 50 indicates contraction.

With the Euro area economy mired in a recession, the ECB's Governing Council will cut its benchmark rate today to a record low 0.5 per cent from 0.75 per cent, according to the median of 70 economists' estimates in a Bloomberg News survey. The Frankfurt- based central bank sees the economy shrinking 0.5 per cent in 2013.