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Eurozone economic recovery accelerated in May
The euro zone's economic recovery gathered pace in May as new orders rose at their fastest pace in over a year, driven by a surge in the services sector while manufacturing continued to stagnate.
© Reuters
Economia Recuperação
The S&P Global Eurozone Composite Purchasing Manager s Index (PMI) 'flash', compiled by German bank HCOB, stood at 52.3 points in May, up from 51.7 in April, and at its highest level in 12 months.
"The eurozone is likely to grow by 0.3% in the second quarter, moving away from the spectre of recession," HBOC chief economist Cyrus de la Rubia said in the report, predicting "GDP growth of close to 1%" is possible for the full year.
"Growth is being driven largely by the service sector, which has now expanded for the fourth month running. Manufacturing is increasingly less of a drag on growth, while optimism about future output has picked up again in the sector," the analyst added.
The report said that the strongest increases in business activity were recorded in Germany, while France saw a decline in overall activity after a modest expansion the previous month.
Employment rose in May as companies responded to higher new orders by taking on more staff, although the pace of job creation was slower in France than in Germany.
Inflation rates for both input costs and prices charged eased in May, but remained above their pre-pandemic averages in both cases.
Business confidence rose to its highest since February 2022, reflecting greater optimism about the future trajectory of business activity.
Read Also: European stock markets rise after Fed minutes (Portuguese version)
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