Euro Area Manufacturing Slows to 51.6 PMI as Output Hits 4-Month Low

9 articles · Updated · investinglive.com · Jun 1

May euro zone manufacturing growth cooled, with the PMI at 51.6 and the output index falling to a four-month low as April’s stockpiling-driven surge faded.
New orders stagnated after April’s fastest rise in four years, with fresh export-order declines and weaker demand emerging as price pressures intensified.
Input costs rose at the fastest pace in four years, while factory selling prices increased at the sharpest rate in 3.5 years, pointing to stronger pipeline inflation.
Supplier delivery times worsened to the most delayed since June 2022, lifting the headline PMI even though the disruption was tied largely to the Strait of Hormuz closure rather than stronger demand.
That mix of softer output and rising costs suggests the manufacturing rebound is losing momentum and could feed more inflation into euro area consumer prices if Middle East tensions persist.

With a key global trade route blocked, is Europe headed for a painful stagflation it cannot escape?

Has the Hormuz crisis finally killed 'just-in-time' manufacturing and what will replace it?

Will the Middle East conflict unexpectedly fast-track the world's permanent shift away from fossil fuels?