Eurozone: Composite PMI steady at six-year high in May
May 24, 2017
Leading data suggest that the Euro area’s economic recovery remained strong in May. The preliminary Eurozone Composite Purchasing Managers’ Index (PMI), produced by IHS Markit, came in unchanged at April’s 56.8, the best result since April 2011. The result overshot market analysts’ expectations of a dip to 56.6.
May’s reading reflected the strongest job growth in over a decade as widespread optimism prevails among firms. Output expanded at the best pace in six years, although new order growth moderated slightly. Strong price pressures were noted across the bloc and selling prices for goods and services increased at a sharp rate. However, input cost inflation eased to a five-month low.
Regarding the two largest Eurozone economies, economic conditions improved in France and Germany, and the PMIs rested at multi-year highs. Elsewhere in the region, economic momentum waned slightly, but was healthy overall.