The growth of economic activity slows down Eurozone. This is indicated by the PMI index elaborated by Markit Economics: the composite index for the month of May stood at 52,9 from 53 in April, the lowest for sixteen months. The slowdown of the last two months seems to herald a phase of weakness in the euro area economy in the second quarter.
Another sign in this direction is the decline in new orders. The index manufacturing PMI fell to 51,5 from 51,7, to a three-month low, while the index of services it remained unchanged at 53,1, again at its lowest level in the last 16 months. At the national level, the index is growing tedesco, which stood at 54,7 points from 53,6 in April, the highest level in the last 5 months.
According to the Chief Economist at Markit Chris Williamson “Another disappointing May figure continues to demonstrate that the strong economic growth in the first quarter was only temporary. The PMI is signaling a disappointing second quarter GDP expansion of just 0.3%.”
According to current trends, it is probable that “growth will weaken further next year. New orders received increased at the weakest rate in nearly a year and a half. In addition, companies' level of optimism about future business has plunged to its lowest level since July 2015.
