(Kitco News) - The Eurozone Services PMI number for May came in at 56.1 vs the expected number of 56.3 and the previous reading of 56.3. There are still strong inflationary issues in the Eurozone and the Russian invasion of Ukraine still weighs heavily on some economies but this figure only slightly missed the economist's forecasts.
The report said, "The eurozone economy continued to expand at a strong rate midway through the second quarter as recently-relaxed COVID-19 restrictions supported a sustained uplift in activity levels". It also noted "The main driving force behind the latest expansion was once again the eurozone’s dominant service sector as ongoing supply-side disruptions, the war in Ukraine, and subdued demand for goods restrained manufacturing output growth"
The German services reading fell to 55.0 from last month's 56.3. The consensus expectation was for the reading to print at 56.3.
The German services PMI report noted "Business Activity Index ticks down to a four-month low of 55.0. The survey's price gauges retreat slightly from April's record highs and the rate of job creation remains robust despite low business confidence".
There has not been too much of a reaction to this data but stock in Europe is largely positive. U.K. markets are closed but the German DAX is up 0.35% and the Euro Stoxx 50 is trading 0.24% higher. EUR/USD has barely moved in the last 17 hours or so and is currently trading at 1.0746.
