The final IHS Markit's Eurozone Manufacturing Purchasing Managers Index (PMI) posted a 15-month low of 55.5 points in May this year, down from April’s 56.2 points and remaining stable compared to the earlier flash estimate of 55.5 points.
The upturn in the euro zone manufacturing sector showed further signs of cooling in May. Rates of expansion in output and new orders both slowed, with increases in employment and backlogs of work also losing momentum. Input cost inflation was up for the first time in four months, whereas the increase rate in output charges slowed further.
The outlook for the manufacturing sector remained positive in May, with companies reporting that they expect output (on balance) to be higher in one year’s time. However, the degree of optimism slipped to its lowest since September 2016.