Euro area manufacturing accelerates further in May as Italy and Spain pick up pace

Nevertheless, in the words of one economist, if demand was strong, the sector's supply-side was "reeling", triggering concerns about rising prices.

IHS Markit's euro area manufacturing Purchasing Managers Index rose from a reading of 62.9 at the end of April to 62.8 in May (consensus: 62.8).

Worth noting, PMI readings for nearly half the countries canvassed were at record highs, including those for the Netherlands and Austria which clocked in with the highest prints.

In Italy meanwhile, the PMI jumped from 60.7 to 62.3 - the latter was also a record high - and in Spain from 57.7 to 59.4.

The Spanish PMI didn't quite set a record but was nonetheless at its strongest since May 1998.

Claus Vistesen, chief Eurozone economist at Pantheon Macroeconomics, labelled conditions in the sector "robust" but noted how the supply-side was "reeling" with firms' purchasing activity also at record levels but companies still not able to source "what they need".

Hence, inventory levels were run down again during the month, although employment now appeared to be in a "solid up-trend" across the bloc and the outlook for the next 12 months was "brightening".

Chris Williamson, chief business economist at IHS Markit sounded a relatively upbeat note when it came to the supply-side pressures and as regards the outlook.

"The survey data therefore indicate that the economy looks set for strong growth over the summer but will likely also see a sharp rise in inflation.

"However, we expect price pressures to moderate as the disruptive effects of the pandemic ease further in coming months and global supply chains improve. We should also see demand shift from goods to services as economies continue to reopen, taking some pressure off prices but helping to sustain a solid pace of economic recovery."