FX.co ★ Eurozone Services Activity Revised Higher

The S&P Global Eurozone Services PMI edged up to 47.7 in May 2026 from April’s five-year low of 47.6. The reading was revised sharply higher from the preliminary estimate of 46.4, bringing it back in line with earlier market expectations. New business inflows continued to fall, reflecting weaker client purchasing power since the onset of the war in the Middle East, which has driven a surge in energy costs. Although input costs rose sharply, firms increased their output prices at a more moderate pace. As a result, companies drew down backlogs to cushion the impact on current output. The reduced capacity requirements led to the first decline in services sector employment since January 2021. Looking ahead, business confidence picked up slightly compared with the previous month but remained below its historical average.