May’s preliminary Eurozone composite PMI drops to a six-month low, indicating accelerating economic contraction.
The Eurozone’s flash composite Purchasing Managers’ Index declined to 47.5 in May, down from April’s reading and marking its lowest level since November. The drop signals a deepening downturn in economic activity across the bloc, with both manufacturing and services sectors weakening further.
The May print fell below consensus estimates and follows a period of stagnation in early 2024. The composite PMI has now remained below the 50 threshold, which separates growth from contraction, for several consecutive months. Comparable data from late 2023 showed a similar downturn before a brief rebound in early 2024.
Markets are monitoring the data for potential implications on European Central Bank policy, as weaker economic activity may influence future rate decisions.