MADRID, 24 May. (EUROPA PRESS) –

The growth of the activity of the private sector in the euro zone has remained at a good pace in the month of May, according to the advance data of the Composite Purchasing Managers’ Index (PMI), which fell to 54.9 points from 55, April 8, its worst reading in the last two months, but which suggests an expansion of GDP in the eurozone of 0.6% in the first two months of the second quarter, which would allow the European Central Bank (ECB) to focus on the inflation control.

“The PMI data equates to the economy growing at a solid 0.6% quarterly rate so far in the second quarter,” said Chris Williamson, chief economist at S

In the month of May, the PMI for the manufacturing sector in the euro zone once again showed a deterioration in the rate of expansion, with a reading of 54.4 points, compared to 55.5 in April, the worst result of the survey in 18 months, while the service sector PMI hit a two-month low, reading 56.3 points from 57.7 last month.

New orders received in the manufacturing sector as a whole fell in May for the first time since June 2020, in contrast to another strong growth in new orders received in the services sector, while similar divergences were seen across sectors with respect to pending orders.

However, in the month of May identical levels of “solid and growing” job creation were recorded in both sectors. In the case of the services sector, the increase in staff was the largest since July 2007.

As for inflation, the average prices charged for products and services increased sharply, although at a rate lower than the all-time high in April, while costs eased slightly for the second consecutive month.

“Although there are signs that inflationary pressures may have peaked, as input cost inflation has slowed for the second month in a row and talk of supply problems is starting to decline, inflationary pressures are still elevated, at previously unprecedented levels,” Williamson said.

In this scenario, the expert considers that the high price pressures, accompanied by the suggested strong GDP growth, may increase the predisposition of the ECB’s monetary policy makers to adopt “a tougher stance.”