Eurozone economic recovery gathers pace as new orders rise at fastest rate in over a year
The eurozone economy is continuing to recover, with new orders rising at the fastest rate in over a year. This is according to provisional PMI survey data released by S&P Global. New orders rose by 1.4% in May, up from 0.8% in April. The increase was attributed to a jump in new orders for services, which was the highest since March 2023.
The overall PMI for the eurozone rose to 52.3 in May, up from 51.7 in April. This was the highest reading since May 2023 and pointed to a solid expansion in business activity.
Germany leads the way
Germany led the way in the eurozone recovery, as its PMI rose to 52.2 in May, up from 50.6 in April. This was the highest reading since May 2023 and pointed to moderate growth in the private sector.
The German services sector PMI rose to 53.9 from 53.2, while the manufacturing sector PMI rose to 45.4 from 42.5. New orders in Germany rose by 2.2% in May, up from 1.5% in April.
France lags behind
In contrast to Germany, France’s PMI fell to 49.1 in May, down from 50.5 in April. This was the first decline in the French PMI since January 2024 and pointed to a contraction in the private sector.
The French services sector PMI fell to 49.0 from 50.8, while the manufacturing sector PMI fell to 45.0 from 46.2. New orders in France fell by 1.5% in May, down from a 0.2% increase in April.
Germany’s recovery is a positive sign for the eurozone
The recovery in Germany is a positive sign for the eurozone as a whole. Germany is the largest economy in the eurozone and its recovery will help to boost growth in the bloc as a whole.
The rise in new orders is also a positive sign, as it suggests that businesses are confident in the future outlook. However, the divergence between Germany and France shows that the economic recovery is not evenly spread across the eurozone.
also read:What is the trend of core prices in Germany since January this year?
Divya