Eurozone Output Cools on Geopolitical Tensions, Supply Constraints

Eurozone output growth expanded for the 15th straight month in May, albeit at a slower pace, amid headwinds linked to the ongoing conflict between Russia and Ukraine and the supply chain issues. EZU is down 0.25%, while VGK is flat premarket.

Source: Markit Economics

• The S&P Global Eurozone PMI Composite Output Index stood at 54.9 in May, lower than the 55.8 recorded in April.
• Growth was driven mainly by services, with the sector posting its second-strongest expansion in the last eight months.
• The Eurozone Services PMI was recorded at 56.3, lower than the 57.7 in the previous month.
• The slowdown was attributed to weaker expansion in financial and industrial services, bringing a slower manufacturing growth.
• The Eurozone Manufacturing Output Index was recorded at 51.2, lower than the 50.7 recorded the past month.
• The second quarter has so far seen the weakest manufacturing growth since shutdowns in the second quarter of 2020 due to the COVID-19 pandemic.
• Output was hit by supply shortages, along with the conflict in Ukraine and the pandemic-related supply chain pressures.