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Eurozone Sees Strong Economic Activity in May
According to the latest survey results, the eurozone experienced an upturn in economic activity in May, with stronger demand conditions supporting greater output and hiring. The HCOB eurozone composite PMI output index increased to a one-year high, indicating the strongest increase in economic activity since May 2023. While France experienced a renewed contraction in private sector activity, Germany, Spain, and Italy all saw growth. Spain's economic growth was particularly sharp, reaching a 14-month high. Total new order intakes rose at the quickest rate since April 2023, and confidence in the year-ahead outlook for business activity strengthened further. Additionally, Eurozone companies raised employment for a fifth consecutive month. Despite cooling inflationary pressures, input costs and output charges remained above their respective pre-pandemic averages.
