Euro zone business growth slowed this month but stayed strong as the cost of living crisis put a dent in consumer spending power while a shortage of raw materials held back expansion in manufacturing.
May's services PMI fell to 56.3 from 57.7, well below the 57.5 predicted in the Reuters poll, as sharply rising prices kept some consumers cautious. Renewed Covid-19 lockdowns in China and Russia's invasion of Ukraine have disrupted supply chains that were only just recovering from the pandemic, sending costs soaring and limiting access to raw materials.
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