US EditionEuro zone May business activity surprisingly contracts, PMI shows
- The euro zone's private sector contracted in May 2025 as the Purchasing Managers' Index fell to 49.5, signaling decreased business activity.
- This contraction follows disappointing preliminary PMIs and growing uncertainty around US-EU trade talks and ongoing trade war risks.
- Manufacturing improved modestly to a 33-month high but stayed below growth territory, while services declined sharply, indicating weak internal demand.
- Shaun Osborne noted the euro dropped 0.3% against the US dollar and underperformed most G10 currencies, reflecting market reactions to mixed economic data.
- The contraction and subdued sentiment leave the European Central Bank debating further easing measures amid downside risks and hopes for Germany's fiscal stimulus impact.
22 Articles
22 Articles
Euro zone May business activity surprisingly contracts
Euro zone business activity unexpectedly slipped back into contraction this month as the bloc's dominant services industry suffered a deeper downturn in demand, although manufacturing showed further signs of stabilisation, a survey showed.
EUR/USD falls below 1.13 as the solid US data undermine the Eurozone PMIs - World Stock Market
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