April and May PMI indicates Euro zone set for an improved second quarter growth

  • As per reports, contrary to Reuters poll projections for a dip in May PMI, Euro zone maintained an improved PMI for the month in keeping pace with April growth numbers.
    As per IHS Markit’s Flash Composite Purchasing Managers’ Index, the May PMI returned 56.8 that matched the PMI achieved in April.  
    These numbers clearly point to Euro zone businesses picking pace and clocking 0.7 percent growth in GDP. If achieved, would mark a significant increase over 0.4 percent predicted by the Reuters poll in May. The poll had predicted PMI to fall from 56.7 to 56.5, but actually grew at its fastest pace since April 2011 to touch 57.0, marking a strong sentiment for growth.
    To keep pace with increasing demand, pace of employment has also increased and was at its fastest in 20 years, with the employment index showing an increase from April’s 55.5 to 56.2 in May.