German manufacturing remained strong, despite a slowdown in growth
Growth
in the eurozone's manufacturing sector slowed during May, a survey has
indicated, as the bloc's weaker economies continued to struggle.
The Markit purchasing managers' index (PMI) for eurozone
manufacturers fell to 54.6 from 58 in April. A reading above 50
indicates growth.
The manufacturing sectors in Greece and Spain contracted, while Italy and the Irish Republic slowed sharply.
France and Germany, key drivers of eurozone growth, also saw a slowdown.
In Germany, the PMI reading fell to 57.7 from April's figure of 62, but the sector remained strong.
"It's a significant slowdown but from an exceptionally high
level, so some of the froth is coming off," said Markit economist Tim
Moore.
However, there was more concern about the weakness seen in the so-called "periphery" economies of the eurozone.
Greece - which is struggling to implement deficit-cutting
policies as part of its EU-IMF loan deal - had a PMI reading of 44.5,
while Spain - which faces huge unemployment - recorded 48.2.
"The worsening growth in the periphery is particularly
worrying, suggesting these countries will face increasing difficulties
in reducing their deficits," said Chris Williamson, chief economist at
Markit.
However, there was some relief for manufacturers in the shape of recent falls in the price of oil and other commodities.
The falls meant that the rate of input cost inflation fell to a six-month low in May.
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