Rising Energy Costs Push Eurozone Business Activity to Sharpest Decline in Over Two Years

Rising Energy Costs Push Eurozone Business Activity to Sharpest Decline in Over Two Years

EUROPE: Economic activity across the Eurozone contracted at its fastest pace in more than two years during May 2026, according to the latest S&P Global Flash PMI survey. The Composite PMI fell to 47.5 from 48.8 in April, marking a second consecutive month of contraction and its lowest level since October 2023. Rising living and energy costs weakened demand, particularly within the services sector, while new orders declined at the quickest pace in 18 months. Inflationary pressures also intensified, with input costs reaching a three-and-a-half-year high. The survey suggests that economic growth in the region is likely to remain under pressure in the coming months. 

Source: Reuters