Economic activity in the eurozone contracts for the first time this year

The economic activity in the eurozone has declined for the first time this year in May. According to market researcher S&P Global, this is mainly due to an unexpected drop in demand in the eurozone's service sector, reaching its lowest level since January 2024. On the other hand, the industry showed some signs of stabilization.

The index measuring overall economic activity in the eurozone fell from 50.4 in April to 49.5 in May. A level above 50 indicates growth, while below signifies contraction. The index had remained above this threshold since the beginning of the year. The contraction was unexpected, as economists had anticipated growth to rise to 50.6.