The pace of decline in the
eurozone's manufacturing sector eased in May as new orders picked up, according
to a closely-watched survey.
Markit's Purchasing Managers' Index (PMI) for the
eurozone manufacturing sector rose to 48.3 from April's 46.7, marking its
highest level in 15 months.
In Germany, Europe's largest
economy, the PMI figure rose to 49.4, just below the 50 threshold and marking
its highest level for three months.
Spain and Greece saw the most
dramatic improvements. Spain's PMI reading of 48.1 was a 24-month high, while
Greece's reading of 45.3 was a 23-month high.
Williamson said the survey indicated
that eurozone GDP was likely to have fallen by 0.2% in the second quarter of
the year.
If GDP falls again in the
April-to-June quarter, it will mean the eurozone's economy has contracted for
seven successive quarters.
The bloc's economy shrank by 0.2%
between January and March. Last week, the OECD downgraded its forecast for the
eurozone's economy again, predicting that it will contract by 0.6% this year,
The European Central Bank has been
under pressure to stimulate the economy, and last month cut its main interest
rate to a record low of 0.5%. The outcome of its latest meeting will be
announced on Thursday.
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