• Prior 55.6
  • Manufacturing PMI 55.3 vs 54.7 expected
  • Prior 56.5
  • Composite PMI 55.8 vs 53.9 expected
  • Prior 54.9

It is a contrast of performances in the euro area as the acceleration in the services sector is largely helping to offset the slump in manufacturing activity. The headline reading is the highest in 8 months but the manufacturing reading is a 15-month low with manufacturing output being at its weakest in 22 months.

The revival in the services sector comes amid the waning influence of the  COVID-19  pandemic but I fear that this may be a bit of a short-lived boost. But at least Europe can look forward to a better summer perhaps if health and travel considerations stay as they are now.

Meanwhile, supply bottlenecks continue to weigh on manufacturing activity with demand also slumping. The other main downside is that cost pressures are seen rising again. Higher costs were passed on to customers resulting in the largest rise in prices charged for goods and services yet recorded.