Eurozone PMI Services was finalized at 55.1 in May, down from April’s 56.2. PMI Composite was finalized at 52.8, down notably from April’s 54.1. HCOB noted that services activity growth stayed strong, but factory output fell at the quickest pace in six months.
Looking at some countries, Spain PMI Composite (55.2), Italy (52.0) and France (51.2) were at 4-month low. Germany was at 53.9, a 2-month low.
Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, said: “Relatively resilient services activity growth should ensure that the eurozone regains some footing and shows a positive rate of expansion in the second quarter after GDP stagnated in the October – March period.
“However, the downturn in manufacturing is a drag on economic growth and is likely to be reflected in a further slowdown in the services sector in the coming months. We do not anticipate an overall economic recession, though.”
