Eurozone PMI Manufacturing edged down to 62.8 in May, down from 62.9, above expectation of 62.4. PMI Services surged to 55.1, up from 50.2, above expectation of 52.0, a 35-month high. PMI Composite rose to 56.9, up from 53.8, a 39-month high.
Chris Williamson, Chief Business Economist at IHS Markit said: “Demand for goods and services is surging at the sharpest rate for 15 years across the eurozone as the region continues to reopen from covid-related restrictions. Virus containment measures have been eased in May to the lowest since last October, facilitating an especially marked improvement in service sector business activity, which has been accompanied by yet another near-record expansion of manufacturing.
“Growth would have been even stronger had it not been for record supply chain delays and difficulties restarting businesses quickly enough to meet demand, especially in terms of re-hiring. The shortfall of business output relative to demand is running at the highest in the survey’s 23-year history.
“This imbalance of supply and demand has put further upward pressure on prices. How long these inflationary pressures persist will depend on how quickly supply comes back into line with demand, but for now the imbalance is deteriorating, resulting in the highest-ever price pressures for goods recorded by the survey and rising prices for services.”
