Manufacturing PMI in the Eurozone hit a record 63.1 in May, from April’s 62.9, according to the IHS Markit press release. The activity came at the back of deteriorations in supply delivery times which drove inflationary pressures.
The manufacturing PMI is now above the 50.0 average for 11 successive months.
Operating conditions remained strong in all the three Eurozone market groups, with investment goods the best-performing.
Netherlands led other Eurozone economies in manufacturing activity with PMI hitting a record high of 69.4.
Germany was the only Eurozone economy to post slower growth, but still managed an expansion close to a record high in March.
Manufacturing output recorded the slowest growth in three months despite remaining closer to a record high of March as new orders accelerated.
Difficulties in getting supplies from vendors was noted as inputs demand exceeded availability.
Supply challenges pushed inflation to unprecedented levels as manufacturers pushed costs to the buyers on rising demand.
Confidence about future conditions was highly positive in May although it eased to a four-month low.
European stocks are currently gaining as the Euro loses. DAX is up 1.66%, EURUSD is down 0.02%
