Markit's Eurozone Manufacturing Purchasing Managers Index (PMI) was at 52.2 points in May, down from April's 53.4 points and the earlier flash estimate of 52.5 points, recording its lowest reading in six months, but remaining at a level consistent with a solid improvement in operating conditions.
In May this year, among the countries covered by the survey, almost all of the countries saw their PMI remain above the 50.0 no-change mark, but only the Netherlands and Spain reported faster rates of growth, at 53.6 and 52.9 points respectively. Meanwhile, France fell back into contraction (49.6 points) after expanding in the prior two months.
Meanwhile, euro zone manufacturing production and new orders both rose for the 11th successive month in May, despite growth easing to the lowest since last November in both cases. Only the Netherlands reported a faster expansion of output, while none of the countries saw improved new order growth.
"The May drop in the manufacturing PMI will add to the clamor for policymakers to provide a renewed, substantial boost to the region's economy and ward off the threat of deflation. However, the decline still leaves the manufacturing economy growing at a quarterly pace of approximately 0.5 percent. The PMI surveys are pointing to a second quarter GDP increase of approximately 0.5 percent," Chris Williamson, chief economist at Markit, said.