FX.co ★ Eurozone Manufacturing Growth Slows Amid Rising Costs

The S&P Global Eurozone Manufacturing PMI slipped to 51.6 in May 2026, down from April’s near four-year high of 52.2, but slightly above the flash estimate of 51.4. The sector remained in expansion for a fourth consecutive month, yet momentum is weakening under the pressure of surging costs and supply chain disruptions linked to the Middle East conflict. One notable outlier was the suppliers’ delivery times index: despite indicating the worst delays since June 2022, it made a positive contribution to the headline PMI, as longer lead times have historically been associated with stronger manufacturing activity. Even so, new orders stalled, production growth lost pace, and both input prices and output charges jumped, reaching four-year and three-and-a-half-year highs, respectively. Employment continued to contract, and business confidence stayed subdued.