Euro zone business activity expanded at its quickest rate in a year in May as growth in the bloc’s dominant services industry outpaced contraction in manufacturing, according to a private survey, which also showed price pressures easing.
Although it was a tad below a preliminary 52.3 estimate, it remained above the 50 mark separating growth from contraction for the third straight month. The services PMI eased slightly to 53.2 last month from an 11-month high of 53.3 in April, just below the flash estimate of 53.3. Improving overall demand boosted optimism about the year ahead. The composite future output index rose to 63.1 in May, its highest since February 2022.
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