Service sector

Eurozone growth remains robust in May thanks to boom in services sector, according to PMI indices

By Maria Martinez

Eurozone economic growth remained robust in May despite headwinds associated with the war in Ukraine, supply constraints related to the Covid-19 pandemic and rising costs of living, S&P Global said.

The composite euro zone purchasing managers’ index fell slightly to 54.9 in May from 55.8 in April, according to the preliminary reading. The figure indicates an expansion in economic activity for the 15th consecutive month, with the rate of growth slowing only modestly.

While the services sector continued to register strong growth on the back of pent-up demand from the pandemic, the manufacturing sector saw only modest expansion for the second month in a row amid falling order book inflows. orders, according to S&P Global.

“Although factories continue to report widespread supply constraints and reduced demand for goods amid high price pressures, the economy is being boosted by pent-up demand for services as restrictions related to the pandemic are over,” Chris Williamson, chief economist at S&P Global Market Intelligence, said in the PMI report.

Both sectors continued to see strong hiring, with the services sector seeing the strongest job growth in nearly 15 years, S&P Global said.

Prices charged for goods and services rose at the second highest rate ever recorded by the survey, although the rate of inflation fell slightly from April.

“While there are signs that inflationary pressures may be peaking, with input costs falling for a second consecutive month and supply constraints starting to be less widely reported, inflationary pressures remain elevated at low levels. unprecedented levels,” Williamson said.

Write to Maria Martinez at