By Andreas Plecko
FRANKFURT (Dow Jones) — The economy in the euro zone lost momentum in May, but remained on a robust growth path. The composite index of private sector manufacturing — manufacturing and services combined — fell to 54.9 from 55.8 the previous month, S&P Global (formerly IHS Markit) reported in its first release. Economists polled by Dow Jones Newswires had predicted a decline to 55.0 points.
Above 50 points, the economic barometer signals growth, below it points to a contraction. The manufacturing purchasing managers’ index fell to 54.4 points from 55.5 in the previous month. Economists had forecast a drop to 54.6 points. The service sector index fell to 56.3 points from 57.7 in the previous month. Economists had expected a level of 57.5 points.
“The eurozone economy remained on an encouragingly robust growth trajectory in May as struggling industry was offset by a thriving service sector,” commented S&P Global Chief Economist Chris Williamson. The data pointed to GDP growth of 0.6 percent in the second quarter.
“However, it remains to be seen how long this upswing in the service sector will last, especially given the rising cost of living,” added Williamson. “The weakness of the industry remains of particular concern as there are early indications that the slack there is already spreading to some areas of the service sector.”
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May 24, 2022 04:16 ET (08:16 GMT)