Growth in eurozone business activity eased this month but was still relatively solid despite a cost of living crisis hampering consumer spending power.
- S&P Global’s flash Composite Purchasing Managers’ Index (PMI) dropped to 54.9 in May from 55.8 in April, lower than the 55.3 expected in a Reuter’s poll.
- May’s services PMI decreased to 56.3 from 57.7, well below the 57.5 projected in the Reuters poll, as sharply rising prices remained some consumers cautious.
- Growth in demand for services deteriorated, and the new business sub-index dropped to 55.2 from 56.6, but firms increased headcount at a faster pace than in April.
- Eurozone manufacturing input and output prices both remained high, and factory managers passed on the rising costs of materials to customers.
A sustained recovery in services helped boost business activity in Germany, even though there are signals rising prices, market uncertainty, and supply problems are beginning to increase pressure on demand.
EuroStoxx50 down -0.76%, EURUSD up +0.30%
Source: S&P Global
