Eurozone manufacturing growth revised slightly higher, but slowdown confirmed

(Sharecast News) - Eurozone manufacturing activity figures for May were revised slightly higher on Monday, but confirmed that growth still slowed from its highest level in nearly four years the previous month. The S&P Global eurozone manufacturing purchasing managers' index (PMI) was adjusted to 51.6 from the preliminary estimate of 51.4, coming in ahead of analysts' expectations for no change from the 21 May report.

However, that was still down from 52.2 in April - the highest level recorded in 47 months - with S&P Global citing that the "upturn [had] lost momentum as demand stagnated".

Inflationary pressures picked up during the month with input costs rising at the steepest rate since May 2022, while the rate of output charge inflation hit its highest in three and a half years.

"Although euro area manufacturers reported an expansion for a fourth successive month in May, the sector is showing signs of struggling under the weight of rising prices and supply disruptions emanating from the war in the Middle East," said Chris Williamson, chief business economist at S&P Global Market Intelligence.

"A key development in May was yet another surge in energy and raw material prices, causing the largest monthly jump in firms' costs for four years. The incidence of supply chain delays has meanwhile risen to the highest since the pandemic supply squeeze of 2022, adding further upward pressure to prices."

In other news on Monday, Eurostat reported that the eurozone unemployment rate held steady at 6.3% in April, surprising economists who had pencilled in a dip to 6.2%.

With the exception of a slight jump to 6.4% in February, the jobless rate has remained unchanged since January 2025.