(Teleborsa) – In May, the eurozone's economic growth rate continued to gallop at the fastest pace in six years. This is reflected in the final May IHS Markit Eurozone Composite Output PMI reading which stood at 56,8, unchanged from the previous flash estimate and final April reading.
This latest production expansion was supported by strong growth in incoming order flow, unchanged from April, marking one of the strongest increases in six years.
At the same time, price pressure remained high, despite the slight easing of both input and output price inflation.
Sectorally, the latest overall expansion of activity has been led by manufacturing.
National PMI data indicated that the strong rate of economic expansion in the Eurozone was mainly due to the improved performance of the two major nations. In both Germany (57,4 points) and France (56,9), growth rates have reached a six-year record. The strong rise in manufacturing production above all supported the German recovery, while in France the leading sector was the tertiary sector. Both nations also indicated higher overall job creation.
In the latest ranking of the PMI Production Index, Spain climbed into second position despite the slowdown from last April's record values. Also in Italy growth decreased slightly. Both nations also recorded large increases in employment.
The service sector expansion rate in May indicated that activity remained buoyant. The IHS Markit PMI Index
Final May Eurozone Services Activity Index came in at 56,3, just below April's 56,4 and just above the previous flash estimate of 56,2. The service sector index has been reporting growing activity for 46 consecutive months.
“The final PMI reading adds further evidence that the Eurozone is enjoying a strong second quarter consistent with 0,7% GDP growth” – commented Chris Williamson, Chief Business Economist at IHS Markit – adding that "The outlook for the Eurozone economy appears to be tipping to the positive, and we are likely to start seeing more growth forecasts for 2017."
