Activity in the euro area continued to pick up in May for the fifth consecutive month, supported by rising services, according to S&P Global, although growth slowed due to a lack of new orders.
S&P Global’s Eurozone PMI Activity Index, which is now part of IHS Markit and released on Tuesday, rose 53.3 in May, down from 54.1 in April but up 50. which separates growth from contraction.
The increase in activity in May bolsters “strong economic growth in the second quarter of the year,” the consultant said.
The good performance was driven by service performance, which recorded the second-highest increase last year, while the decline deepened in industry.
There was an increase in orders in May, albeit the smallest in four months, with the industry falling at an “accumulative pace” that could not be offset by a fifth consecutive increase in services.
This divergence was also observed in the evolution of employment, which grew “slightly” in the manufacturing industry, but much stronger in the service sector.
In terms of inflation, prices charged rose at the slowest rate in two years, again due to the industry cutting prices for the first time since 2020, but services rose “dramatically” amid higher costs due to higher wages. .
Looking ahead, companies continued to moderate their optimism, especially in the industrial sector, due to concerns about weak demand and rising interest rates.
Author: Portuguese
Source: CM Jornal
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