DistantNews
Support us
🇸🇰 Slovakia /Economy & Trade

Eurozone Private Sector Activity Shrinks at Fastest Pace in 30 Months

From SME · () Slovak

Translated from Slovak and summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources Context piece
  • Eurozone private sector activity declined in May at the fastest pace in two and a half years, with the PMI falling to 47.5.
  • The downturn, driven by worsening demand and falling new orders, suggests a 0.2% contraction in GDP for the second quarter.
  • Rising input costs and customer prices indicate inflation is likely to remain around 4% in the coming months.

The economic outlook for the Eurozone has darkened considerably, with preliminary data from S&P Global revealing a sharp contraction in private sector activity for May. The Purchasing Managers' Index (PMI) has plummeted to its lowest level since October 2023, signaling a significant downturn that economists warn could lead to a 0.2% decrease in GDP for the second quarter.

The war in the Middle East is cited as a major contributing factor to these worsening economic conditions. The data highlights a severe deterioration in overall demand, with new export orders experiencing their steepest fall since January 2025. This broad-based decline, affecting both services and manufacturing sectors, underscores the fragility of the Eurozone's economic recovery.

The economy faces increasingly serious consequences of the war in the Middle East.

· Chris WilliamsonEconomist at S&P Global, commenting on the economic downturn.

Adding to the concerns are rising inflation figures. Input prices have surged to a three-and-a-half-year high, and customer prices are also climbing at their fastest rate in 38 months. While the current inflation rate in April was 3%, S&P Global forecasts it to hover around 4% in the near future. This persistent inflationary pressure, coupled with declining economic activity, presents a challenging scenario for policymakers aiming to stabilize the economy.

The data from the May survey suggest that Eurozone GDP will fall by 0.2 percent in the 2nd quarter.

· Chris WilliamsonEconomist at S&P Global, forecasting the impact on GDP.
About this summary

Originally published by SME in Slovak. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

More Stories

From Our Blog