Key facts
- Euro zone manufacturing PMI decreased to 51.6 in May from 52.2 in April.
- Input costs for manufacturers reached a four-year high in May.
- New orders stagnated in May, and export orders declined.
- Factory output expanded at the slowest pace since January.
- Firms increased prices charged at the fastest rate in three-and-a-half years.
- Supply chain delays worsened to their most severe since June 2022.
The Purchasing Managers' Index (PMI) is a key indicator of economic health for the manufacturing sector. A reading above 50 indicates expansion, while a reading below 50 signals contraction. The recent slowdown and rising input costs suggest potential challenges for Euro zone manufacturers, complicating the European Central Bank's efforts to control inflation.