Strong recovery signal in the Eurozone economy
Private sector commercial activity in the Eurozone reached its highest level in the last year.
The outlook for the 20-nation bloc is improving after a recession in the second half of last year.
Private sector commercial activity in the Eurozone reached its highest level in the last year, indicating that the economic recovery in the region continues.
S&P Global’s Purchasing Manager Index (PMI) rose to 52.3 in May. The data exceeded analysts’ estimates and rose above the 50 threshold, signaling growth for the third month.
While the readings of Germany, Europe’s largest economy, exceeded expectations, services in France underperformed.
Hamburg Commercial Bank Chief Economist Cyrus de la Rubia said in his statement on the subject, “The euro zone economy is getting stronger. While new orders are increasing in a healthy way, the confidence of companies is also reflected in the stable hiring pace.” said.
At a time when inflation is approaching its 2 percent target and the European Central Bank (ECB) is about to start cutting interest rates, the European Commission said last week that the continent was on the path to a soft landing.
Isabel Schnabel, a member of the ECB Executive Board, stated that the growth momentum has accelerated somewhat recently, adding to the optimism that the worst period of the economic crisis is behind us. “We are currently seeing a slight recovery in the economy in the Eurozone. At the same time, inflation continues to decline. Therefore, there is hope that we will manage to return to price stability without experiencing a recession,” Schnabel told the German broadcaster ARD on Wednesday. said.