Manufacturing output in the eurozone slowed during the month of May, despite having expanded during the previous 11 months.
At the same time, the overall health of the area’s economy was still up by 0.5%.
France had the weakest manufacturing performance in May, being the only country to report a drop in new business. Both domestic demand and new export orders were too low to bring about any growth, despite prices being discounted to boost production.
March and April, however, had both been months of expansion for France.
Germany, the other major economy in the region, also experienced a slowdown.
Growth was achieved only in Spain and the Netherlands. In Spain, that growth was the highest in 49 months and came despite an increase in selling prices.
Higher selling prices were also recorded in Germany, Italy and the Netherlands.
Austria and Greece were able to lower their selling prices, but still did not receive enough orders and they both suffered reduced output.
Nevertheless, the region’s economy was growing at a quarterly pace of some 0.5%, according to Markit Eurozone Manufacturing PMI, which provided the data.
The growth in part is due to the services sector of the economy, where expansion is growing at its quickest pace in nearly three years.
Meanwhile, the UK’s manufacturing activity increased for the 15th consecutive month in May. Companies of all sizes employed more workers for the 13th month in a row.
Both British domestic demand and orders from abroad grew.
Manufacturing accounts for some 10% of the UK economy.
