Euro area PMIs miss forecasts in May, but economy resilient
By Alexander Bueso
Date: Tuesday 24 May 2022
(Sharecast News) - Euro area economic growth was resilient in May despite being buffeted by multiple headwinds, the results of three closely-followed surveys revealed.
But economists were cautious.
S&P Global's preliminary Eurozone services sector Purchasing Managers' Index printed at 56.3, which was down on April's reading of 57.7 and below the consensus for 57.5.
The manufacturing PMI meanwhile came in at 54.4, which was down from 55.5 and below the consensus forecast of 54.6, as well as an 18-month low.
In parallel, the composite index for output in both manufacturing and services fell from 55.8 to 54.9, missing forecasts for 55.1.
"Thanks to buoyant demand for services, particularly from households, the PMI data are consistent with the economy growing at a solid quarterly rate of 0.6% so far in the second quarter," said Chris Williamson, chief business economist at S&P Global Market Intelligence.
"However, it remains to be seen how long this service sector rebound can persist for, especially given the rising cost of living, and the weakness of manufacturing remains a concern, as the factory malaise is already showing signs of spilling over to some parts of the services economy."
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