Eurozone Manufacturing Contracts as Trade Tensions Weigh

In a related story, the Financial Times reported that manufacturing in the eurozone contracted in May, with an influential gauge indicating that activity remains weak as producers grapple with the intensifying US-China trade war and a slowing global economy. The single currency area is struggling to recover from the slowdown that began almost a year ago, according to the closely watched eurozone manufacturing purchasing managers’ index, which remained below the crucial 50 level in May. The flash manufacturing reading, which gives an indication of broader export sentiment, hit a two-month low of 47.7, just below April’s reading of 47.9. Export growth has been under pressure since the middle of 2018, affecting manufacturers across the region, including in Germany, the zone’s economic powerhouse. Another closely watched poll, the Ifo Institute’s business climate indicator, which reflects business sentiment in Germany, fell to 97.9 in May, the lowest level since 2014. Read more