Eurozone Business Growth Stalls in May as Services Contract, PMI Shows

Eurozone Business Activity in May

• 📌 Eurozone business activity barely expanded in May, with the Purchasing Managers' Index (PMI) falling to 50.2 from 50.4 in April.
• ⚠️ This reading was the weakest since February and indicates a significant slowdown, with figures above 50 generally showing growth and below 50 indicating contraction.

Services Sector Contraction

• 📉 The dominant services industry contracted for the first time since November, weighed down by falling demand.
• 💡 The business activity index for the services sector dropped just below the 50 mark in May.

Performance of Major Economies

• 🇮🇹 Italy led the way with its fastest growth in over a year.
• 🇪🇸 Spain's expansion slowed to a 17-month low.
• 🇫🇷 France moved closer to stabilization, showing its softest decline in 9 months.
• 🇩🇪 Germany slipped back into contraction territory.

Employment and Future Outlook

• 📈 Employment across the Eurozone increased only marginally in May.
• 🏦 Analysts widely anticipate the European Central Bank will cut interest rates on Thursday.