Output was still contracting in May, although at a slower pace, according to PMI flash estimates released this morning. The Composite PMI for activity, a good track of GDP growth, came in at 47.7, from 46.9 recorded in April. German businesses were a little bit more optimistic in May than in April, with the Composite PMI for activity up by 0.7 point to 49.9, consistent with stable output. By contrast, French data did not show significant signs of improvement. The Composite PMI remained blocked at 44.3 in May, still deep into contraction territory. In the rest of the zone conditions remain difficult, with output falling although at a slower pace.
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BNP Paribas