(BRUSSELS) - Eurozone business activity improved unexpectedly in April, according to a survey, although analysts warn that the economy is in the midst of a "moderate slowdown."

Provisional results for NTC Research's survey of business leaders in the 15-nation eurozone nudged up to 51.9 points in April from 51.8 points in March.

The result exceeded economists' forecasts that the widely-watched purchasing managers index would ease to 51.6 points. A reading below 50 points indicates contraction.

The overall improvement was driven by an upturn in the vast service sector, where the index rose to 51.8 points in April from 51.6 in March.

However, manufacturing sector activity slumped to a 32-month low of 50.8 points after registering 52.0 points in March.

Despite the improvement in the overall level of business activity, economists said the data were consistent with a mildly slowing growth.

Global Insight economist Howard Archer said the survey indicated "overall activity essentially only stable at recent significantly lower levels."

"Eurozone economic activity is clearly continuing to struggle markedly in the face of the very strong euro, tight credit conditions, financial market volatility, elevated oil and commodity prices, and slowing global growth," he said.

"Nevertheless, the elevated price pressures evident in the purchasing managers' surveys are likely to keep the ECB talking tough on inflation and reinforce belief that interest rate cuts are off the agenda for several months to come," he added.

Capital Economics analyst Jennifer McKeown found solace in the fact that the survey indicated that the eurozone economy was not rapidly lurching into recession.

"April's slight pick-up in the eurozone composite PMI index provides some encouragement that economic activity is not slowing too sharply, although growth remains subdued," she said.

"In all, with Germany still performing well, the eurozone economy seems to be experiencing a pretty moderate slowdown, for now at least," she said.

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