Eurozone PMI Services was finalized at 30.5 in May, up from April’s 12.0. PMI Composite was finalized at 31.9, up from 13.6. Among the member states where data are available, improvement were seen in Italy, Germany, France and Spain. But all PMI composite stayed well below 50, with Italy at 33.9, Germany at 32.3, France at 32.1, Spain at 29.2.
Chris Williamson, Chief Business Economist at IHS Markit said:
Eurozone GDP is consequently set to fall at an unprecedented rate in the second quarter, accompanied by the largest rise in unemployment seen in the history of the euro area.” But ” the downturn has already eased markedly in all countries surveyed.”
“Providing there is no resurgence of infection numbers, the planned lifting of lockdowns will inevitably help boost business activity and sentiment further in coming months. “However, the outlook is scarred by the prospect of demand remaining weak due to household spending being hit by high levels of unemployment and corporate spending being subdued as companies repair balance sheets.”
“We therefore remain cautious with respect to the recovery. Our forecasters expect GDP to slump by almost 9% in 2020 and for a recovery to prepandemic levels of output to take several years.”
