Eurozone News
LAST UPDATE: June 2, 2025
Euro Zone Factory Downturn Eased in May, PMI Shows
The eurozone’s manufacturing sector showed signs of recovery in May 2025, with the PMI rising to 49.4 from 49.0 in April, marking the highest level in 33 months.
Insight
The easing of the downturn suggests that the eurozone’s manufacturing sector is stabilizing. The increase in production and new orders, along with improved export demand, indicates a potential turnaround. However, the PMI remains below the growth threshold, highlighting that challenges persist. The data may influence the European Central Bank’s monetary policy decisions, especially regarding interest rate adjustments to support the recovery.
Italy’s Ailing Manufacturing Sector Shows Signs of Stabilisation, PMI Shows
Italy’s manufacturing sector showed signs of stabilization in May 2025, with the PMI increasing to 49.6 from 48.4 in April, indicating a slower rate of contraction.
Insight
The improvement in Italy’s manufacturing PMI suggests that the sector is moving towards stabilization. The slower decline in output and new orders indicates that the worst may be over. However, the PMI remains below 50, signaling that the sector is still contracting. Continued monitoring and supportive policies may be necessary to sustain the positive momentum and achieve growth.
Spain’s Manufacturing Sector Rebounds in May, PMI Shows
Spain’s manufacturing sector returned to growth in May 2025, with the PMI rising to 50.5 from 48.1 in April, marking the first expansion since January.
Insight
The rebound in Spain’s manufacturing sector indicates a positive shift, driven by increased output and improved sales trends. The easing of global tariff uncertainties may have contributed to the recovery. The return to growth is a positive sign for the Spanish economy, suggesting resilience and the potential for sustained expansion in the manufacturing sector.
