Eurozone activity continued to pick up in May for the fifth consecutive month, thanks to a boost from services, although the pace of growth was moderated by a lack of new orders, according to S&P Global.
The advance of the PMI index of activity in the euro zone, prepared by S&P Global -which is now part of IHS Markit-, published today, stood at 53.3 points in May, below 54.1 points in April, but above 50 points that separates growth from contraction.
The increase in activity in May consolidates “the solid economic growth so far in the second quarter of the year,” according to the consultant.
The good performance of the activity was due to the performance of services, which recorded the second largest increase in the last year, while industry deepened its contraction.
In May there was an increase in orders, although the lowest in four months, with the industry falling “at an increasing rate”, which could not be offset by the fifth consecutive increase in the services sector.
This divergence was also observed in the evolution of employment, which grew “slightly” in manufacturing, but much more strongly in services.
Regarding inflation, the prices charged grew at the slowest rate in two years, again due to the industry, which reduced prices for the first time since 2020, but services increased “strongly” in the face of higher costs due to the increase in wages. .
Looking ahead, businesses continued to temper their optimism, particularly in the industrial sector, on concerns about weak demand and rising interest rates.
Source: TSF
