Eurozone Manufacturing PMI Rises to 49.4 in May, Services PMI Falls to 48.9

Eurozone Initial Manufacturing PMI Rises to 49.4 in May Against 49.3 Estimate

The Eurozone's Manufacturing PMI improved to 49.4 in May, surpassing the market's estimate of 49.3 and slightly up from the previous month's reading of 49.0. Despite this rise, the figure still indicates contraction in the manufacturing sector, as anything below 50 signals a decline in activity.

However, the Services PMI for the bloc saw a notable decline, dropping to 48.9 in May from 50.1 in April. This figure fell short of the expected 50.3 and marks the lowest reading in 16 months, indicating a contraction in the services sector.

The Eurozone Composite PMI, which combines both manufacturing and services data, fell to 49.5 in May, down from 50.4 in April, missing the consensus forecast of 50.7. This dip suggests overall economic slowdown in the Eurozone.

Despite the uptick in manufacturing, the negative performance in services continues to weigh on the overall economic outlook for the Eurozone, with EUR/USD continuing its losses above the 1.1300 mark following the PMI data releases. Investors will likely monitor the region’s economic trajectory closely as these figures suggest a potential softening in economic activity.