Key facts
- Euro zone business activity contracted in May.
- Surging inflation driven by the war in Ukraine is dampening demand.
- The downturn indicates a likely contraction in the second quarter's GDP.
Business activity in the Euro zone contracted in May. This contraction was driven by surging inflation, which has been exacerbated by the war in Ukraine and has dampened demand. The current downturn suggests a likely contraction in the second quarter's GDP.