A survey showed Eurozone manufacturers appear to have passed their worst. However, as government-imposed lockdowns due to the coronavirus pandemic, activity is still contracting sharply.
Even though cases of the virus are still being reported, many Eurozone countries have slowly started to reopen parts of their economies. After crashing to the lowest reading in the survey’s nearly 22-year history in April, IHS Markit’s Manufacturing Purchasing Managers’ Index (PMI) recovered somewhat last month. From April’s 33.4, it rose to 39.4 in May. It is just below an earlier flash reading of 39.5.
From April’s record low of 18.1, the index measuring output remained weak but did almost double to 35.6. Forward-looking indicators in the survey suggested the recovery would be slow with citizens still encouraged to stay home and many businesses remaining shuttered.
