Euro zone manufacturing growth slows in May

| June 1, 2011 | 0 Comments

Manufacturing activity in the 17-member euro zone fell in May, figures showed today.

The Markit Purchasing Managers’ Index (PMI) posted a reading of 54.6 in May, from April’s level of 58.

However, the index continues to remain above the crucial 50 level which indicates expansion.

The slowdown was attributed to the nation’s weaker economies, which continue to struggle amid the debt crisis.

Manufacturing activity contracted in Greece and Spain, while Italy and Ireland slowed significantly.

Germany and France, the main drivers behind economic growth in the 17-member nation, also noted a slowdown.

Germany, which is the largest economy in the euro zone, saw a PMI reading of 57.7, plunging from April’s 62 and represented a seven-month low.

Commenting on the figures, Markit economist Tim Moore, said: “It’s a significant slowdown but from an exceptionally high level, so some of the froth is coming off.”

In related news, the European Union’s statistics office Eurostat yesterday revealed inflation in the euro zone eased in May to 2.7% from 2.8% in April.

Meanwhile, unemployment in the region remained flat at 9.9% in April.

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