Eurozone PMI Manufacturing was unchanged at 63.1 in May, above expectation of 62.1. PMI Services rose to 58.0, up from 55.2, above expectation of 57.6, and a 41-month high. PMI Composite rose to 59.2, up from 57.1, a 180-month high.
Chris Williamson, Chief Business Economist at IHS Markit said:
“The eurozone economy is booming at a pace not seen for 15 years as businesses report surging demand, with the upturn becoming increasingly broad-based, spreading from manufacturing to encompass more service sectors, especially consumer-facing firms.
“Virus containment measures have been eased to the lowest since last September and are set to be reduced further in July to the lowest since the pandemic began. Vaccination programmes are also making impressive progress. This has not only facilitated greater activity in the service sector in particular, but the brightening prospect of life increasingly returning to normal has also pushed confidence to an all-time high, fueled greater spending and encouraged hiring.
“The data set the scene for an impressive expansion of GDP in the second quarter to be followed by even stronger growth in the third quarter.
“However, the strength of the upturn – both within Europe and globally – means firms are struggling to meet demand, suffering shortages of both raw materials and staff. Under these conditions, firms’ pricing power will continue to build, inevitably putting further upward pressure on inflation in the coming months.”
