Financial News: Eurozone Manufacturing Activity Growth Slows

Eurozone Manufacturing Activity Growth Slows

06/01/2026 - 08:36:00 (RTTNews)

(RTTNews) - The upturn in the euro area manufacturing sector lost momentum in May amid rising prices and supply disruptions due to the war in the Middle East, final survey results from S&P Global showed Monday.

The manufacturing Purchasing Managers' Index fell to 51.6 in May from a near four-year high of 52.2 in the prior month. The flash score was 51.4.

The volume of new orders received stagnated in May after hitting a four-year record in April and growth in production reached the slowest since January.

Purchases of raw materials increased only marginally. With delivery delays worsening, stocks of purchases depleted in May. Further, outstanding orders posted its first monthly reduction since February.

Factory employment declined in May, extending the current period of uninterrupted contraction to exactly three years.

Manufacturers' expectations for output over the coming year showed a muted level of optimism.

Finally, factories faced higher cost pressures in May. Input prices grew at the fastest rate in four years. In turn, manufacturers raised their charges, to the greatest degree in three-and-a-half years.

"Policymakers will be eager to stamp out the rise in inflation, but will also be cautious as to how far rate rises go given the indications of faltering demand that are already appearing," S&P Global Market Intelligence Chief Business Economist Chris Williamson said.

Germany's manufacturing growth stalled in May as the positive impact from the frontloading of orders faded. The final manufacturing PMI came in at 50.1 in May, down from 51.4 in April but remained above the flash score of 49.9.

France's manufacturing sector contracted in April as the solid growth in April proved to be short-lived. The final factory PMI declined to 49.7 from 52.8 in the prior month. The initial score was 48.9.

On the other hand, Italy's manufacturing sector grew at the strongest pace in just over four years. The PMI rose unexpectedly to 52.9 in May from 52.1 in April. The score was seen at 52.0.

Spain's manufacturing activity posted a slower growth in May as the closure of the Strait of Hormuz led to widespread product shortages and steep rise in costs. The factory PMI registered 51.2 in May, down from 51.7 in April.

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