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The euro zone economy continued to grow at a healthy pace in the middle of the second quarter of this year, as recently eased COVID-19 restrictions supported a sustained increase in activity levels, according to S&P Global, which recently said the main driver of the latest expansion was once again the eurozone’s dominant services sector, as continued supply-side disruptions, the war in Ukraine and weak demand for goods dampened growth in the euro zone. manufacturing output.

Despite the resilience of the services sector, there was an overall loss of momentum within the sector in May, leading to private sector business output growth at the slowest pace since January amid currency effects. fading post-pandemic catch-up, growing uncertainty and rapid inflation, S&P Global said. in a press release.

Nevertheless, the combined inflow of new business into manufacturing and service businesses continued to grow in May, while there was further evidence of reduced capacity as backlogs of work increased again.

The euro zone economy continued to grow at a healthy pace in the middle of the second quarter of this year, as recently eased COVID-19 restrictions supported a sustained increase in activity levels, according to S&P Global, which recently said the main driver of the latest expansion was again the eurozone’s dominant service sector.

The seasonally-adjusted S&P Global Eurozone Purchasing Managers’ Composite Output Index fell to a four-month low of 54.8 in May from 55.8 in April.

While the headline measure was still indicative of economic growth in the eurozone, it also highlighted a loss of momentum. This slowdown was exclusively the result of weaker service sector expansion amid signs that the post-lockdown rebound was losing steam.

Nevertheless, activity in services continued to grow at a sustained pace and masked a clear weakness within the goods-producing sector. Although manufacturing output growth rose slightly from April’s 22-month low, it was subdued and below its long-term average.

Of the eurozone constituents monitored, Ireland was the fastest growing economy in May. That said, expansion there has slowed to a four-month low. The slowdowns were more or less widespread at the country level over the last survey period, with Spain being the only exception as the growth rate there remained unchanged since April.

At the other end of the spectrum, Italy was the worst performer and recorded a modest expansion in private sector output. The latest survey data showed a further increase in new business receipts across the euro area private sector in May.

Fibre2Fashion (DS) News Desk