Eurozone composite PMI revised slightly lower, but still hits 12-month high

Economic growth in the eurozone's private sector was revised slightly lower for May, according to final estimates of the region's composite purchasing managers' index (PMI) by S&P Global and Hamburg Commercial Bank (HCOB).

Nevertheless, the eurozone economy still expanded at its fastest rate in a year as inflation continued to cool.

The final reading of the HCOB eurozone composite PMI was 52.2 for May, down marginally from the preliminary reading of 52.3 but up from 51.7 in April and the highest rate of growth since May 2023.

The services PMI was revised to 53.2, down from the initial reading of 53.3 and April's 53.3.

Confidence in the year ahead among purchasing managers strengthened after a setback in April, rising to their highest levels since February 2022, with companies raising employment for the fifth straight month.

Meanwhile, price gauges indicated cooling inflationary pressures across the eurozone. However, input costs were still rising and remained well above the pre-pandemic average.

"It was a similar picture for output prices – the rate of inflation in selling charges eased to a six-month low, but remained considerably steeper than that seen on average prior to 2020. Manufacturers continued to register reductions in both of the survey’s pricing measures, whereas services companies registered historically sharp rises," HCOB said.