European PMI in May Sees Small Improvement

Europe got another piece of “less bad” news. The area’s Purchasing Manager’s Index decline was a little better than in previous months, but only a little. However, Spain’s level was the best in 23 months. Add that to slightly better jobs figures and there may be light at the end of the tunnel.

Otherwise, according to Markit:

  • Final Eurozone Composite Output Index: 47.7 (Flash 47.7, April 46.9)
  • Final Eurozone Services Business Activity Index: 47.2 (Flash 47.5, April 47.0)
  • Germany ekes out marginal growth, while downturns ease in Spain and France

The downturn in the eurozone economy eased for the second month running in May. Rates of decline eased for both manufacturing production and service sector business activity, reaching 15- and three-month lows respectively.

At 47.7, the final Markit Eurozone PMI Composite Output Index was in line with its earlier flash estimate and above April’s 46.9.

Germany edged out of contraction territory in May, as an improvement in its manufacturing sector offset a slight decrease in service sector business activity. Although the downturns in France, Spain. and Italy all remained marked, rates of contraction eased to a five-month low in France, 23-month low in Spain and stabilised in Italy.

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