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Eurozone economic growth stable in May

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Eurozone economic growth stable in May

Eurozone's economic growth remained unchanged at 56.8 in May, compared to an earlier flash estimate and the final six-year high figure reached in April, according to the IHS Markit Purchasing Managers' Index.

Optimism about output rose to its highest level since data for this series was first collected in July 2012.

"Strong new order inflows tested capacity, leading to rising volumes of outstanding business. This in turn led to faster job creation, with employment rising at one of the quickest rates seen over the past decade," according to the announcement.

Price pressures, meanwhile, remained elevated, despite some easing in both input cost and output charge inflation. Service sector business activity in the eurozone ticked up to 56.3 in May from a prior flash estimate of 56.2, but slipped from the final reading of 56.4 in April.

Germany and France saw solid economic expansion in May, based on the final composite output index. The seasonally adjusted composite PMI output index rose to 57.4 in May from 56.7 in April for Germany and to 56.9 from 56.6 for France. Meanwhile, Italy's services economy continued to display strong growth momentum.

The outlook for the eurozone economy "seem to be tilting to the upside, and it seems likely that we'll start to see many forecasters' expectations for 2017 growth revised higher," Chris Williamson, chief business economist at IHS Markit, said.