According to Markit Economics research, in May 2015, the eurozone manufacturing PMI increased from 52 in April to 52.2. Though below the forecast by 0.1, the index shows signs of increased economic activity, as it exceeds 50.
A rise in oil prices and the euro’s decline against US dollar and other major world currencies result in higher production costs for European companies. For 23 months in a row, manufacturing activity growth has been observed in the eurozone.
At the same time, the PPI (producer price index) for local manufacturers somewhat dropped last month, suggesting their reduced profitability. Based on these statistics, in the second quarter of the current year manufacturing output growth across the eurozone will amount to 0.5%, Chris Williamson, chief economist at Markit, said.
In May, the German manufacturing PMI reached 51.4. Business activity in France expanded from 48 in April to 49.4 against the forecast 49.3. The UK index also rose, from 51.8 to 52, although in this case more substantial growth up to 52.5 was expected.
