Eurozone Private Sector Activity Contracts Sharply Amid Rising Inflation

Private sector business activity in the eurozone experienced its steepest decline in 18 months during May, with the Composite PMI Output Index falling to 48.5. This contraction, the second consecutive monthly drop, suggests a likely economic downturn in the second quarter. Simultaneously, both input costs and output prices intensified, indicating persistent inflationary pressures despite weakening demand.