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Eurozone manufacturing growth at 15-month low in May

Growth in the eurozone's manufacturing sector fell to its lowest level in 15 months as growth in output, new orders, new export business and employment slowed, IHS Markit's final Purchasing Managers' Index data showed.

The headline manufacturing PMI came in at 55.5 in May, down from 56.2 in April and in line with a flash estimate. The May reading marks the index's 59th straight month of expansion.

"Some of the weakness may have been related to a higher than usual number of holidays during the month, but risks appear tilted towards growth remaining subdued or even cooling further in coming months," said Chris Williamson, chief business economist at IHS Markit.

Consumer, intermediate and investment goods industries registered growth, but the pace of increase eased.

Weaker export sales weighed on production and order book growth. New export orders rose at the weakest rate for nearly two years in May, partly due to a stronger euro and slower imports demand from key markets, notably the U.S., Williamson said.

Manufacturing companies continued to hire to meet rising outstanding business, though the pace of jobs creation fell to a 14-month low.

On the price front, the rate of input price inflation accelerated for the first time since January, while output price inflation eased to its lowest in five months.

Manufacturing firms maintained a positive outlook, but the degree of optimism fell to its lowest since September 2016. Still, firms expect higher output over the next 12 months.

Manufacturing PMI fell to 56.9 from 58.1 in Germany and to an 18-month low of 52.7 in May from 53.5 in April in Italy.

The manufacturing PMI rose to 54.4 in May from 53.8 a month ago.