- European Central Bank
Manufacturing activity in the currency bloc continued to rise in May, according to flash data from Markit. The flash manufacturing PMI for the Euro zone increased to 52.3 points in May, compared to 52.0 in April. The region's services sector also enjoyed a healthy expansion, with the flash services PMI reading booking 53.3. Also, the closely-watched composite PMI came in at 53.4, remaining firmly in green territory. In Germany, the Euro zone's powerhouse, the manufacturing sector saw output continued to increase in May, albeit at a slower pace. May's preliminary PMI for Germany's manufacturing sector came in at 51.4, compared with April's final reading of 52.1, and below analysts expectations of 52. Meanwhile, activity in the country's service sector deteriorated in the reported month, the flash data showed. The preliminary services PMI fell to 52.9 points, below April's 54.0 points and failing to meet expectations of 53.9.
According to ECB monetary policy meeting accounts, officials agreed that the central bank's asset buying programme worth 60 billion euros per month yielded intended results. However, full benefits would only be seen if governments proceeded with key reforms. Earlier in the week the ECB said it could step up its purchases of Euro zone government bonds ahead of the summer lull.
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