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Eurozone manufacturing growth slows, input costs rise

Created at 1 Jun · 5:00 AM5 sources↑ Market-relevant5 events
IN SHORT

Eurozone manufacturing growth slowed in May, with demand stagnating and input costs reaching a four-year high. The S&P Global Eurozone Manufacturing PMI fell to 51.6 from 52.2 in April, indicating a loss of momentum but still in expansionary territory. This data suggests persistent inflationary pressures.

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Key Numbers

51.6Eurozone Manufacturing PMI in May
52.2Eurozone Manufacturing PMI in April
four yearshighest input costs in

Who's Involved

S&P Global
compiled the Eurozone Manufacturing PMI survey

↳ Why This Matters

The slowdown in Eurozone manufacturing growth, coupled with rising input costs due to supply-chain disruptions, indicates persistent inflationary pressures within the bloc. This data point, alongside elevated consumer inflation expectations, will be closely monitored by the European Central Bank as it considers its monetary policy stance.

Key facts

  • Eurozone manufacturing growth slowed in May.
  • Demand for goods stagnated.
  • Input costs reached their highest level in four years.
  • The S&P Global Eurozone Manufacturing PMI fell to 51.6 in May from 52.2 in April.

The slowdown in Eurozone manufacturing growth, coupled with rising input costs due to supply-chain disruptions, indicates persistent inflationary pressures within the bloc. This data point, alongside elevated consumer inflation expectations, will be closely monitored by the European Central Bank as it considers its monetary policy stance.

Frequently asked questions

The slowdown was attributed to stagnating demand for goods and supply-chain disruptions that pushed input costs to a four-year high.

The PMI fell to 51.6 in May from 52.2 in April, indicating that manufacturing growth lost momentum but remained in expansionary territory (above 50).

Input costs reached their highest level in four years, driven by supply-chain disruptions.

What Happens Next

01Markets will continue to monitor manufacturing PMI data for signs of economic trends.
02The European Central Bank will consider this data in its upcoming monetary policy decisions.

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Cadence
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How It Developed

1 Jun · 10:04 AM
The article highlights that Eurozone inflation is expected to rise, prompting the ECB to prepare for a rate hike.
LiveSquawk Market Reports via PiQSuite
1 Jun · 8:15 AM
Eurozone manufacturing growth slowed in May due to stagnating demand and rising input costs, reaching a four-year high.
Reuters via PiQSuite
1 Jun · 8:07 AM
ECB survey shows consumers' near-term inflation expectations unchanged at 4.0% in April.
Econostream via PiQSuite
1 Jun · 4:33 AM
Eurozone inflation remained above the ECB's 2% target in May, with rising fuel costs expected to persist, leading to speculation of further ECB tightening.
Economic Times via PiQSuite

Sources

T1
Global Market: Eurozone inflation stays above ECB target as fuel costs begin to filter throughm.piqsuite.com
T1
ECB: Consumer Inflation Expectations Remain Elevated Ahead of June Meetingm.piqsuite.com
T1
Euro zone factory growth slowed in May as input costs hit four-year high, PMI showsm.piqsuite.com
T1
Eurozone Inflation Poised For Next Rise As ECB Preps Rate Hikem.piqsuite.com
T1
Euro zone factory growth slowed in May as input costs hit four-year high, PMI showsm.piqsuite.com

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