Eurozone PMI Services was finalized at 53.2 in May, slightly down from April’s 53.3. PMI Composite was finalized at 52.2, up from prior month’s 51.7, a 12-month high. Also, business confidence surged to 27-month high. Inflation rates cooled but remained above pre-pandemic averages.
A closer look at individual countries reveals varying levels of economic activity. Spain leads with a robust Composite PMI of 56.6, marking a 14-month high. Germany follows with a Composite PMI of 52.4 and hitting a 12-month peak. Conversely, Italy’s PMI dipped to a three-month low of 52.3, and France lagged with a Composite PMI of 48.9 and marking a two-month low.
Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, commented on the broader implications of these figures: “The spectre of recession is off the table.” He highlighted the crucial role of the service sector in driving this positive shift, noting, “In Germany, we can now talk of an upward trend, Italy’s business activity remains solid, and Spain has improved from an already strong position.” However, he also acknowledged the challenges facing France, which has seen a recent dip in economic performance.
