Markit's flash Eurozone PMI hits 16-month low

Markit’s flash Eurozone composite purchasing managers’ index slipped to a 16-month low of 52.9 in May from 53.0 in April, missing expectations for a reading of 53.2.

The services PMI was unchanged at 53.1, undershooting forecasts of 53.3.

Meanwhile, the manufacturing PMI dipped to a three-month low of 51.5 from 51.7 in April, missing estimates of 51.9.

Chris Williamson, chief economist at Markit, said: “A disappointing flash Eurozone PMI for May adds further to the suggestion that the robust pace of economic growth seen in the first quarter will prove temporary. The PMI is signalling lacklustre GDP growth of only 0.3% in the second quarter.

“The forward-looking indicators also suggest that growth is more likely to weaken further than accelerate. Inflows of new work showed the smallest rise for nearly a year-and-a-half, while optimism about the business outlook in the service sector sank to its lowest since July 2015.”