Preliminary May manufacturing and services reports in Europe are coming in stronger than expected, but they’re still signaling contraction.
According to Markit, eurozone flash pmi climbed to 47.7 in May, up from 46.9 in April. Manufacturing PMI increased to 47.8 from 46.7 a month ago. Services PMI improved to 47.5 from 47.0 a month ago.
According to economists surveyed by Bloomberg, the flash PMI was expected to improve to just 47.2.
While this is better than expected, any reading below 50 signals contraction.
Markets across Europe continue to be deep in the red.