Eurozone Services Experience Mixed Performances In May

Business activity in the eurozone experienced a mixed performance in May.

This is as the dominant services industry provided support while the manufacturing sector faced a deepening decline, according to the final Composite Purchasing Managers' Index (PMI) released by HCOB on Monday.

The survey, compiled by S&P Global, serves as a reliable indicator of the overall economic health of the bloc.

The PMI fell to a three-month low of 52.8 in May, down from April's 54.1. Although the index remained above the 50 mark, indicating growth, it fell short of the preliminary estimate of 53.3.

Economists, such as Cyrus de la Rubia, the chief economist at Hamburg Commercial Bank, believe that the relatively resilient growth in the services sector will help the eurozone regain stability and exhibit positive expansion in the second quarter, following a period of stagnation in GDP from October to March.

The PMI for the services sector declined to 55.1 in May from April's one-year high of 56.2, slightly below the flash reading of 55.9. Meanwhile, the manufacturing PMI released the previous week, revealed a deepening downturn in factory activity due to declining demand, despite falling prices.