Decent Eurozone Sentiment Masks A Sputtering Growth Engine

2025-05-27 07:15:00 ET

Summary

• While the eurozone PMI deteriorated in May, the European Commission’s economic sentiment indicator actually picked up a bit compared to the April reading.
• The manufacturing sector is weathering the trade war storm quite well so far.
• But weaker services are a bigger concern for growth in the eurozone at the moment.

By Bert Colijn

While the eurozone PMI deteriorated in May, the European Commission’s economic sentiment indicator actually picked up a bit compared to the April reading (up from 93.8 to 94.8). This was mainly due to a slightly more upbeat consumer, but industry sentiment also ticked up again....

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