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Eurozone business growth slows in May as factories struggle – PMI

London, June 5 (Reuters)Business activity in the eurozone picked up last month as the eurozone’s dominant services sector offset a sharp decline in manufacturing, according to the survey, which also showed that overall price pressures had eased.

The HCOB Final Composite Purchasing Managers Index (PMI), compiled by S&P Global and seen as a good indicator of overall economic health, fell to a three-month low of 52.8 in May from 54.1 in April. Decreased.

It was still well above the 50 mark that separates growth from contraction, but was below the preliminary estimate of 53.3.

“Relatively resilient growth in service activity has helped the eurozone regain some foothold and boost gross domestic product (GDP) in the October-March quarter,” said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank. “After the stagnation, we will see positive expansion in the second quarter.”

The PMI for the services sector fell to 55.1 from a one-year high of 56.2 in April and below the preliminary reading of 55.9.a Manufacturing PMI A report released last week showed weak demand and a deepening slowdown in factory activity despite falling prices.

Overall cost pressures eased in May, with both the headline input price index and the output price index falling. The production index fell to 56.4 from 56.8, the lowest level since April 2021.

Policymakers at the European Central Bank, which has yet to bring inflation down to its target, will welcome this, but the ECB-monitored service firms have accelerated their rate hikes, leaving factories largely responsible for driving prices down. It was the reason I pulled it down.

Nonetheless, demand for services continued to grow and companies increased headcount, albeit at a slower pace. The employment index fell to 54.6 from April’s 11-month high of 55.6.

“The services sector is underpinned by a strong labor market, rising wages and a thriving tourism sector across Europe,” said Della Rubia.

“The latter was confirmed by the new export business PMI, which includes tourism-related demand, following a series of near-May peaks.”

(Jonathan Cable, Editing Toby Chopra)

((jonathan.cable@thomsonreuters.com+44 20 7513 4029;))

The views and opinions expressed herein are those of the authors and do not necessarily reflect those of Nasdaq, Inc.

Summarize this content to 100 words
London, June 5 (Reuters) – Business activity in the eurozone picked up last month as the eurozone’s dominant services sector offset a sharp decline in manufacturing, according to the survey, which also showed that overall price pressures had eased.
The HCOB Final Composite Purchasing Managers Index (PMI), compiled by S&P Global and seen as a good indicator of overall economic health, fell to a three-month low of 52.8 in May from 54.1 in April. Decreased.

It was still well above the 50 mark that separates growth from contraction, but was below the preliminary estimate of 53.3.
“Relatively resilient growth in service activity has helped the eurozone regain some foothold and boost gross domestic product (GDP) in the October-March quarter,” said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank. “After the stagnation, we will see positive expansion in the second quarter.”
The PMI for the services sector fell to 55.1 from a one-year high of 56.2 in April and below the preliminary reading of 55.9.a Manufacturing PMI A report released last week showed weak demand and a deepening slowdown in factory activity despite falling prices.
Overall cost pressures eased in May, with both the headline input price index and the output price index falling. The production index fell to 56.4 from 56.8, the lowest level since April 2021.
Policymakers at the European Central Bank, which has yet to bring inflation down to its target, will welcome this, but the ECB-monitored service firms have accelerated their rate hikes, leaving factories largely responsible for driving prices down. It was the reason I pulled it down.

Nonetheless, demand for services continued to grow and companies increased headcount, albeit at a slower pace. The employment index fell to 54.6 from April’s 11-month high of 55.6.
“The services sector is underpinned by a strong labor market, rising wages and a thriving tourism sector across Europe,” said Della Rubia.
“The latter was confirmed by the new export business PMI, which includes tourism-related demand, following a series of near-May peaks.”

(Jonathan Cable, Editing Toby Chopra)
((jonathan.cable@thomsonreuters.com+44 20 7513 4029;))

The views and opinions expressed herein are those of the authors and do not necessarily reflect those of Nasdaq, Inc.

https://www.nasdaq.com/articles/euro-zone-business-growth-slowed-in-may-as-factories-struggled-pmi Eurozone business growth slows in May as factories struggle – PMI

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