The euro zone manufacturing industry shows recovery signs: Is the crisis ending?
propagandahe PMI Manufacturing HCob From the euro area in May 2025 it was 49.4, above 49.0 April, according to the S& P Global. but, Continue to shrinkBecause it was less than 50, and he distinguished a slower rhythm than shrinking The manufacturing sector Since August 2022.
Meanwhile, production increased for the third month in a row, and new requests stabilized after that Almost three years of descent. The rhythm of the exhaustion of the demand portfolio has also been reduced to the slowest rhythm since June 2022.
next to, Employment levels remain laggingAlthough it has decreased to the slower rhythm since September 2023. The costs of inputs decreased for the second month in a row, which means the fastest decrease in 14 months, while Production prices They went for the first time since February of this year.
Issued the work improves the euro area
Business confidence has reached its highest level in May for more than three years. Dr. Cyrus from Al Shaqra, Chief Economist at the Commercial Bank The recovery that is progressing. This increase in production has been supported since March.
“What is especially encouraging is that Production recovered in Four major economies in the euro areaThis indicates the capacity of this recovery. As production increased for a period of three months in a row, historical patterns indicate that there is 72 % chance to see another increase next month. “
However, he stressed that the possibility of this The United States imposes a higher tariffAgainst the European Union It is an important danger to these perspectives. He added from the blonde: “Nevertheless, companies are significantly optimistic than last month about the possibility of producing more from here to a year, which indicates some resistance, even in the face of potential protectionist measures on the other side of the Atlantic Ocean.”
the It is located in oil and gas prices and Useful interest rates They supported the euro zone manufacturing sector in May, with an increase in production in France, Germany, Spain and Italy.
The Spanish manufacturing sector exceeds the market expectations
According to the S&P GLOBAL, the PMI Making Index was 50.5, a jump in April 48.1. This data exceeded analysts’ expectations, which you put in 48.4 points. After three consecutive months of contraction, this is the first Expanding the Spanish industrial sectorIn addition to being the highest number since January.
The highest number may be due to the fact that the basic demand has improved slightly. Although the uncertainty greatly affected the sector in April, The market seems equivalent A little in May.
The volume of the sales of the Spanish manufacturing sector decreased in May, although the decline was the smallest in four months. Companies continued to employ for the third month in a row, while Input costs decreased For the first time since the beginning of last year.
Production prices have also decreased to the fastest rate since September 2024, mainly due to a More competition in the market. In the same way, production confidence increased over the next 12 months to a maximum of three months.
“The Spanish manufacturing sector sent encouraging signals in May,” Jonas Fieldsen, novice economist at Hamburg Commercial Bank. Global tariff struggle“.
“Although direct dependence on Spain in the American market is relatively limited compared to countries like Germany or ItalyThe indirect effects of generalized improvement in global trade views may contribute. “
The German manufacturing sector is still disappointing
According to the S&T GLOBAL, the German May Procurement Manager Index in 48.3, less than 48.4 April. This is the 35th consecutive month German manufacturing sector shrinkingDespite the progress of production for the third month in a row.
Manufacturing production was mainly supported by the increase in Export orders Coming from the United States and Europe, although the new orders in general continued to decline slightly, the loss of delaying domestic demand. Labor cuts slowed to the weakest pace from January 2024, and the inputs of supplies and purchase activity decreased.
propagandaThe price of inputs continued to decline, and their jogging Low petroleum pricesAnd the stagnation of the request and The euro fuel. Strong competition led to greater discounts in factory prices in May, while optimism about future production was launched at the highest level since the beginning of 2022.
Encouraging signs despite the contraction of the industrial sector
Dr. Cyrus from Al -Ashkar Shades of the industrial sector This good news often passes without anyone noticing it. That is why it is worth looking beyond the PMI’s main number, which has decreased slightly and remains in a shrink area. Panorama offers Encouraging signs“.
Production increased for the third month in a row and orders from abroad Two months in a row. Moreover, the recovery of production is not limited to one sector, but it is generalized: team commodities, medium commodities and consumer goods. “
He also indicated that the feeling of work can be optimistic about Forming a new governmentBesides a wide infrastructure package, the promise of sales and financial plans Increase defensive spending.
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