The PMI index went from 53.8 in April to a strong 56.9 in May 2021. Orders grew at a level not seen in almost 15 years.
The activity of the private sector in the European Union registered its strongest rise in just over three years in May, as a result of the relaxation of measures to contain the pandemic, according to the Markit PMI index released on Friday.
The PMI index went from a 53.8 registered in April to a strong 56.9 in May, the specialized institute pointed out. An indicator below 50 exposes a contraction picture, while above that mark it exhibits an increase in economic activity.
According to Markit, “activity in the Eurozone grew at a clearly faster rate in May as economies continued to open up from restrictions” in the battle against covid-19.
The growth rate “is the highest in just over three years, while orders grew at a level that has not been seen in almost 15 years,” said the specialized institute.
At the same time, the “optimism of companies in relation to the remaining year continues to reach even higher levels.”
Markit also noted that price indicators “also grown, reaching historic highs in the manufacturing sector, and demand continues to exceed supply in many goods and services.”
For Markit chief economist Chris Williamson, “containment measures [for the pandemic] have been relaxed in May to their lowest level since last October” and that allowed an improvement in activity in services.
In Williamson’s view, growth could have been “even stronger if not for delays in the supply chain and difficulties in resuming business quickly enough to meet demand.”
