The euro zone manufacturing PMI index rose to 47.3 in May from 45.7 in April, its highest level in 14 months. The improvement signals a potential turning point for manufacturing, which has been on a downward trend since April 2023.
Looking at country data, Greece led the way with a PMI of 54.9, its lowest level in four months. Spain followed with 54.0, its highest level in 26 months, while the Netherlands recorded its highest level in 21 months at 52.5. France recorded its highest level in three months at 46.4, and Austria's highest level in 15 months at 46.3. Meanwhile, Italy and Germany both posted their highest levels in months, but still posted low PMIs of 45.6 and 45.4 respectively.
Silas de la Rubia, chief economist at Hamburg Commercial Bank, highlighted this as a potential “tipping point” for the industry, noting that the industry's production decline is nearing an end: Business confidence about future production is at its highest level since the beginning of 2022, he noted.
Germany is on track to overtake Italy, which has recently underperformed, despite having the lowest PMI among the four largest eurozone countries. France's industrial sector has improved but still lags, and Spain is the only one of the four eurozone countries with a growing industrial sector.
Read the full final Eurozone Manufacturing PMI report here.
