Eurozone PMI services was finalized at 52.9, up from flash reading at 52.5 and April’s final at 52.9. PMI Composite was revised up to 51.8, up from flash reading of 51.6 and April’s final at 51.5. Among the countries, Italy PMI Composite improved to 49.9, 2-month high. France PMI Composite rose to 51.2, 6-month high. German PMI Composite rose to 52.6, 3-month high. But Spain PMI Composite dropped to 52.1, 66-month low.
Chris Williamson, Chief Business Economist at IHS Markit said:
“The final eurozone PMI for May came in higher than the flash estimate, indicating the fastest growth for three months, but the overall picture remains one of weak current growth and gloomier prospects for the year ahead. While the service sector has seen business conditions improve compared to late last year, growth remains only modest, in part reflecting a spill-over from the trade-led downturn in the manufacturing sector.
“Despite output at goods and service providers collectively rising at a slightly faster rate in May, the survey data are merely indicating a modest 0.2% rise in GDP in the second quarter.
“Furthermore, there seems little prospect of any immediate improvement: new orders barely rose in May, painting one of the gloomiest pictures of demand seen over the past six years, and companies’ expectations of growth over the coming year likewise fell to one of the lowest in six years.
“The survey also brought further signs that companies are having to increasingly compete on price to sustain sales growth, dampening inflationary pressures to the lowest for two-and-a-half years.
“Although Germany and France saw stronger growth in May, rates of increase remained subdued. Spain meanwhile saw growth slip to the lowest since late-2013 but Italy once again reported the toughest conditions, stuck in a mild downturn.”
