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.
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Source: S&P Global