Eurozone manufacturing continues to grow

The eurozone manufacturing sector continued to grow in May,
but did so at a slower rate than in the previous month, according to the latest

Dow Jones Newswires reports that Data firm Markit’s Purchasing
Managers Index (PMI) for the eurozone for May was 52.2. The figure for April
was 53.4.

Readings above 50 correspond to expansion, while figures under
50 indicate contraction in activity.

Commenting on the result, Howard Archer, an economist at IHS
Global Insight told Dow Jones Newswires, “The slowdown in eurozone
manufacturing activity in May reinforces belief that the ECB will deliver a
package of measures at its June 5 policy meeting, including interest rate cuts
and liquidity measures.”

Markit also released the PMI results for individual
countries in the Eurozone:

  • Netherlands – 53.6
  • Italy – 53.2
  • Spain – 52.9
  • Germany – 52.3 (flash 52.9)
  • Greece – 51.0
  • Austria – 50.9
  • France – 49.6 (flash 49.3)

Meanwhile, the Markit/CIPS UK Manufacturing PMI dropped slightly in May to 57.0.

Back home in Australia, the Ai Group’s PMI for May was 49.2.
This was a 4.4 point increase compared with April.