Eurozone Output Falls to Four-Month Low as Post-Lockdown Recovery Fades

Source: S&P Global

Output in the eurozone declined to the lowest level in four months in May, as it was held back by the weak expansion of the services sector. EZU is down 0.95%, while VGK is down 1.05%.

• The Final Eurozone Composite Output Index stood at 54.8 in May, down from 55.8 in April. This is the slowest growth since January.
• The Final Eurozone Services Business Activity index fell to 56.1 from the 57.7 recorded in the previous month.
• The slower growth indicated that the post-lockdown rebound has started to lose steam.
• The slowdowns were generally seen across most countries during the month, except for Spain, which reported the same growth rate in April.
• Business receipts of the private sector slowed to a four-month low as new orders and foreign client demand declined.
• Business confidence hovered around the weakest levels recorded since mid-2020, with concerns over Ukraine, inflation, and supply issues.