Eurozone private sector economic growth was revised slightly downward in May, according to the final estimate of the region's composite Purchasing Managers' Index (PMI) from S&P Global and Hamburg Commercial Bank (HCOB).
However, the euro zone economy still expanded at its fastest pace in a year as inflation continued to subside.
The final HCOB Eurozone Composite PMI reading for May was 52.2, down slightly from the provisional reading of 52.3 but up from April's 51.7, marking the strongest growth since May 2023.
The services PMI was revised down to 53.2, down from an earlier reading of 53.3 and from 53.3 in April.
Purchasing managers' confidence about the year ahead strengthened after a decline in April, rising to the highest level since February 2022, and companies added jobs for the fifth consecutive month.
Meanwhile, price indicators showed that inflationary pressures were easing across the euro area, but input costs remained elevated and well above pre-pandemic averages.
“The story was similar for production prices, with sales commission inflation settling at a six-month low but still significantly higher than the pre-2020 average. Manufacturers continued to record price declines on both survey price indices, while service companies recorded historically sharp price increases,” the HCOB said.
