The euro area manufacturing purchasing managers’ index is estimated to be 39.5 against 33.4 in April, according to a preliminary estimate for this month, reports British market researcher Markit.
A level of 50 or more indicates growth, below that shrinkage. So the industry is still shrinking, but less than last month. Factories in Europe are slowly opening their doors again.
Tourism wiped out
The index for the services sector, including tourism, retail, hospitality and aviation, rose to 28.7 from the dramatic low of April 12.
Public life in many European countries is slowly starting up again and the services sector is benefiting from this. The eurozone composite industry and services index improved to 30.5 from 13.6 in the previous month.
Still a long way to go
Markit researchers warn that there is still a very long way to go before the European economy returns to pre-crisis levels and that there will be a major economic downturn this quarter. Businesses remain pessimistic and concerned, and many jobs are still being lost due to the crisis.
Markit previously released figures for France and Germany, which showed that their economies are less bad than in April.