here<\/a>.<\/p>\nAs for the overall Eurozone readings above, the manufacturing print was a 3-month low while the services print was a 63-month low. Meanwhile, the composite print was a 31-month low. All in all, it points to near certainty that the euro area economy will contract in the second quarter of the year.<\/p>\n
New business in the services sector in particular was weak, registering the sharpest decline for a year-and-a-half. As for manufacturing conditions, the frontloading activity in March and April is fizzling out now and we’re starting to see output hampered as a result.<\/p>\n
On the price front, input cost inflation accelerated for the seventh
\nconsecutive month in May – hitting a three-and-a-half year
\nhigh. Meanwhile, the average prices charged for goods and services
\nrose at the fastest pace in 38 months.<\/p>\n
And all of this comes as manufacturers
\ncontinue to report severe supply-chain disruptions. Of note, suppliers’ delivery times
\nlengthened markedly to the largest degree in just under
\nfour years.<\/p>\n
S&P Global notes that:<\/p>\n
\u201cMay\u2019s flash PMI survey data show the eurozone economy
\ntaking an increasingly severe toll from the war in the Middle
\nEast. Output has now contracted for two successive months,
\nwith the rate of decline accelerating in May to its highest for
\njust over two-and-a-half years. The survey data indicate that
\nthe euro area economy looks set to contract by 0.2% in the
\nsecond quarter.\n<\/p>\n
\u201cJob losses are also starting to become worryingly widespread
\nas business confidence in any swift turnaround in the adverse
\neconomic climate fades further.\n<\/p>\n
\u201cThe service sector is being hit especially hard by the surge in
\nthe cost of living created by the war, notably via the demandsapping impact of higher energy prices. While there has been
\nsome support to manufacturing from precautionary stock
\nbuilding, this boost is starting to fade, with demand for both
\ngoods and services now in decline.\n<\/p>\n
\u201cThe region\u2019s supply shock from the war is also intensifying,
\nas indicated by increasingly widespread supply chain delays.
\nSupply shortages threaten not only to constrain growth in
\nthe coming months but also have the potential to add further
\nupward pressure to inflation.
\n\u201cThe rise in the survey\u2019s price gauges already hints at inflation
\nrunning close to 4% in the coming months which, combined
\nwith the growing signs of the region slipping into an economic
\ndownturn, creates a deepening dilemma for policymakers.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Services PMI 46.4 vs 47.7 expectedPrior 47.6Manufacturing PMI 51.4 vs 51.8 expectedPrior 52.2Composite PMI 47.5 vs 48.8 expectedPrior…\n","protected":false},"author":2,"featured_media":85613,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[84,1294,56,54,55],"class_list":["post-597533","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/597533","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=597533"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/597533\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/85613"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=597533"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=597533"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=597533"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}