Live Chat

Eurozone PMI rises to 12-month high of 52.3 in May

Eurozone PMI Composite rises to 12-month high of 52.3

Germany spearheaded the ongoing recovery in eurozone economic activity in May, according to the flash eurozone PMIs, indicating that global growth is becoming less dependent on the U.S.

The eurozone economy had contracted in the latter half of 2023 due to a surge in energy and food prices following Russia’s invasion of Ukraine and the subsequent rise in interest rates aimed at controlling inflation.

In contrast, the U.S. economy saw robust expansion during the same period, resulting in an unusually wide growth gap between the U.S. and the eurozone. This gap has narrowed as the eurozone returned to growth in the first quarter of this year, and the surveys suggest this trend will persist.

Eurozone business activity increased for the third consecutive month in May, reaching the fastest pace in a year. The Eurozone PMI (Purchasing Managers Index) Composite, which measures activity in both the services and manufacturing sectors, rose to 52.3 from 51.7 (a reading above 50.0 indicates growth).

Choose your points of movement

Сalculate your hypothetical P/L (aggregated cost and charges) if you had opened a trade today.

Market

Shares Search
Shares
Index
Commodity
Bonds
Crypto
ETFs
Currency

Instrument

Search
Clear input
Occidental
Prosus N.V.
Porsche AG
Hermes
CAT
Thermo Fisher
Nikola Corporation
Tilray
Shell plc (LSE)
Skillz Inc
Iberdrola
DeltaAir
CrowdStrike Holdings
Golar LNG
Applied Materials
Snowflake
Royal Bank Canada
Amazon.com
Spotify
Exxon Mobil
CCB (Asia)
McDonald's
Campari
GameStop
Netflix
ON Semiconductor
Costco
Dave & Buster's
Delivery Hero SE
LUCID
Continental
Zoom Video Communications
Schlumberger
Virgin Galactic
Upwork Inc.
Cameco
JP Morgan
Fuelcell
Rivian Automotive
XPeng Inc
Wal-Mart Stores
Trade Desk
Blackstone
Vodafone
Aptiv PLC
L'Oreal
Target
Rio Tinto
Sartorius AG
British American Tobacco
Qorvo
ASOS
Cisco Systems
Nel ASA
Arista
Airbus
Apple
Pfizer
AMC Entertainment Holdings
ASML
Hubspot
Teladoc
Starbucks
SMCI
Canopy Growth
Wish.com Inc
Lockheed Martin
ProSiebenSat.1
IAG
AbbVie
Marston's
Baidu
Teleperformance
Norwegian Air Shuttle
Airbus Group SE
HSBC HK
Block
Annaly Capital
Abbott
LVMH
American Express
Novavax
GoPro
Siemens
Total
SIG
Pinterest Inc
Taiwan Semi
Etsy
Amgen
SONY
3D Systems
UPS
BlackBerry
Gen Digital Inc
Xiaomi
Quanta Services
Unity Software
NVIDIA
Anglo American
Palantir Technologies Inc
Fresnillo
Deere
Rolls-Royce
Porsche
Uber
Vir Biotechnology
American Airlines
ROBLOX Corp
Macy's
FirstRand
easyJet
DISNEY
Aurora Cannabis Inc
BP
Adidas
Boeing Co
Vonovia
Coca-Cola Co (NYSE)
Home Depot
General Electric
Coinbase Inc
ALIBABA HK
Philip Morris
General Motors
PayPal
UniCredit
II-VI
BASF
Kraft Heinz
Alphabet (Google)
Palo Alto Networks
Plug Power
Li Auto
Oracle
Roku Inc
UiPath Inc
Upstart Holdings Inc
F5 Networks
Infinera
Inditex
ZIM Integrated Shipping Services Ltd
Deutsche Bank
Hammerson
IBM
JD.com
Barrick Gold
Lemonade
MerckCo USA
Infosys
Invesco Mortgage
Comcast
Santander
Accenture
Anheuser-Busch Inbev
Visa
Mastercard
T-Mobile
SAP
Wayfair
Beyond Meat
Kuaishou
CarMax
Tesla
Lyft
Medtronic
Adobe
Morgan Stanley
Workday Inc
Blackrock
Vipshop
Meta (Formerly Facebook)
Linde PLC
Micron
Lululemon
Ceconomy
Chipotle
Gilead
Naspers
Bristol Myers
The Cheesecake Factory
Glencore plc
British American Tobacco
ChargePoint Holdings Inc
Twilio
Intel
Lloyds
CNOOC
Electrolux
Wells Fargo
Sea
PG&E
Fedex
Citigroup
Peloton Interactive Inc.
eBay
Microsoft
JnJ
Bilibili Inc
Trump Media & Technology Group
AIA
Nasdaq
Air France-KLM
Allianz
Lithium Americas Corp
Procter & Gamble
Qualcomm
AMD
New Oriental
MercadoLibre.com
Mondelez
Lumentum Holdings
Two Harbors Investment aration
AstraZeneca
Norwegian Cruise Line
Unilever
GoHealth
PepsiCo
Barclays
PETROCHINA
Goldman Sachs
Eli Lilly
HSBC
Cellnex
Berkshire Hathaway
Jumia Technologies
HDFC Bank
RTX Corp
Bayer
Bank of America
Chevron
ADT
DoorDash
Marriott
Nike
AT&T
GSX Techedu
Robinhood
Telecom Italia
Deliveroo Holdings
TUI
Freeport McMoRan
Toyota
BioNTech
Airbnb Inc
Alibaba
Verizon
Nio
Eni
Ford
Volkswagen
UnitedHealth
Shopify
China Life
Snap
Christian Dior
Conoco Phillips
Lufthansa
Tencent
Moderna Inc
Salesforce.com
Broadcom
Diageo
Toro
Cinemark

Account Type

Direction

Quantity

Amount must be equal or higher than

Amount should be less than

Amount should be a multiple of the minimum lots increment

USD Down
$-

Value

$-

Commission

$-

Spread

-

Leverage

-

Conversion Fee

$-

Required Margin

$-

Overnight Swaps

$-
Start Trading

Past performance is not a reliable indicator of future results.

All positions on instruments denominated in a currency that is different from your account currency, will be subject to a conversion fee at the position exit as well.

Germany “outshines” French economy as Services PMI grows

This uptick was driven by Germany, where robust services and industrial improvement pushed activity to its highest level in a year. This helped the bloc’s manufacturing sector move closer to recovery, hitting a 15-month peak.

Also released, France's Manufacturing PMI rose from 45.3 to 46.7 in May, while Services PMI declined from 51.3 to 49.4. The Composite PMI fell from 50.5 to 49.1, returning to contraction.

In Germany, Manufacturing PMI increased from 42.5 to 45.4 in May, reaching a 4-month high. Services PMI climbed from 53.2 to 53.9, marking an 11-month high, while the Composite PMI rose from 50.6 to 52.2, achieving a 12-month high.

Hamburg Commercial Bank chief economist Dr. Cyrus de la Rubia commented on the data:

“The German economy is outshining the French one, driven by a robustly growing services sector which is shrinking in France. The manufacturing sector’s development is less severe in France, but as in Germany the sector has not yet escaped recession. While people love to compare the performance of economies, finger pointing to the possible weaknesses and strengths, the good news here is that overall, both economies move in tandem. This means that there are good chances for France to catch up eventually in the services sector which would put eurozone growth on a sounder footing.”

A similar survey due later on Thursday is expected to show steady growth in U.S. activity in May. The narrowing growth gap between the U.S. and the eurozone suggests that any divergence in their central banks' policies may be short-lived.

The European Central Bank (ECB) has signaled plans to lower its key interest rate in early June, while the Federal Reserve is waiting for evidence that a slowdown in inflation will resume before making similar moves.

Eurozone PMI “supportive” for ECB rate cut on June 6, says economist

Eurozone PMI “supportive” for ECB rate cut on June 6, says economist

Dr. Cyrus de la Rubia offered his thoughts on the flash Eurozone PMI reading:

“This looks as good as it could be. The PMI composite for May indicates growth for three months straight and that the eurozone’s economy is gathering further strength. [...] Manufacturing acts less and less as a stumbling block for the economy and optimism about future output has increased further.”

The eurozone continued to add jobs this month in response to stronger demand, the surveys showed. And an easing of price pressures will alleviate inflation concerns at the European Central Bank, De La Rubia said.

“This will be supportive for the apparent stance of the ECB to cut rates at the meeting on June 6,” he said.

Despite the recovery, the eurozone shouldn’t bank on successive cuts to borrowing costs, ECB Vice President Luis de Guindos said in an interview published Thursday:

“There is a huge degree of uncertainty. We have made no decisions on the number of interest rate cuts or on their size. We will see how economic data evolve[s]”.

Continued resilience in the eurozone economy would likely stay the ECB’s hand, according to a note from economist Franziska Palmas at Capital Economics cited by The Wall Street Journal.

“If the economy continues to hold up well, cuts further ahead may be slower than we had anticipated,” she said.

Euro gains vs. USD, GBP after data shows Eurozone PMI growth in May

The euro gained against multiple currencies following the data release on Thursday. EUR rose 0.14% against sterling, with EURGBP trading at 0.8523 as of 10:00 GMT on May 23.

The European common currency saw stronger gains against the U.S. dollar, with EURUSD up by 0.2%, trading at $1.0846. The U.S. dollar index (DXY), a measure of the greenback’s strength against multiple major peers, was down 0.18% at 104.74. DXY previously saw gains after various Federal Reserve officials said they were willing to hike interest rates if needed, as per recently released FOMC minutes.

EUR to JPY was also up 0.13% at 169.94 yen.


When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.

Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.

Latest news

Friday, 11 October 2024

Indices

Gold performance 2024 and how much will gold price increase in Q4?

Stocks retreat from recent highs as US inflation comes in stickier than expected

Friday, 11 October 2024

Indices

Stocks retreat from recent highs as US inflation comes in stickier than expected

ECB set to cut rates for the third time this year

Thursday, 10 October 2024

Indices

Week ahead: ECB set to cut as Wall Street earnings season gathers pace

Thursday, 10 October 2024

Indices

Dollar fluctuates after CPI Inflation and Jobless Claims came in stronger

Live Chat