The euro zone's economic recovery accelerated in May, according to preliminary figures released on Thursday.
of H.C.O.B. The Eurozone Composite PMI Production Index rose to 52.3 from 51.7 in April, indicating business activity expanded for the third consecutive month. Measurements above 50.0 indicate expansion, and measurements below 50.0 indicate contraction. Analysts expected it to be 52.0.
The overall expansion was again driven by the services sector, which saw activity grow for the fourth consecutive month, with the pace of growth unchanged from April.
Meanwhile, manufacturing production continues to decline, with the current downward trend now stretching into 14 months.
The survey also showed that new orders rose at the fastest pace in more than a year.
Dr. Silas de la Rubia, Chief Economist hamburg commercial bank“This is a great outlook. May's PMI composite index showed growth for the third consecutive month, and the euro area economy is gaining further strength. Encouragingly, new orders are healthy. “Companies' confidence is reflected in the steady pace of employment.”
“This time, service sector input and output price inflation has softened compared to the previous month, which is also good news for the European Central Bank (ECB). This would support the ECB's intention to cut rates. However, an improved inflation outlook is unlikely to be enough for the central bank to announce further rate cuts.
