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Eurozone PMI dropped in May due to manufacturing contraction
The composite PMI fell from 54.1 to 53.3 in May, which is the first decline since October last year. The divergence between services and manufacturing is growing, with services inflation accelerating again. The latter is the main concern for the European Central Bank. The PMI continues to point to decent economic growth, but the first decline in the index in more than half a year is indicative of the weakening manufacturing sector. The decline in the manufacturing output PMI from 48.5 to 46.3 puts it further into contraction territory. New orders continue to fall and backlogs of work are becoming smaller, adding to ... (full story)