The eurozone records accelerated economic growth in May, led by Spain and Germany.

Economic activity in the eurozone has experienced significant growth during the month of May, reaching its fastest pace in a year, according to the IHS Markit Eurozone Composite PMI Total Output Index. This indicator, published by S&P Global, reveals a value of 52.2 for the month in question, surpassing April's reading of 51.7. Additionally, business confidence has reached its highest point in 27 months, suggesting a promising outlook for the region. In this growth context, Spain has stood out as one of the countries with a stronger performance in the eurozone. Its economic growth has strengthened, accelerating to its highest level in 14 months. This growth is in addition to that of Germany, the largest economy in the bloc, which has also experienced a marked recovery with an increase in total activity volumes at the fastest pace in a year. On the other hand, Italy has seen its economic expansion slow down to its weakest level since February, contrasting with the growth observed in Spain and Germany. France, on the other hand, has been the outlier in May, experiencing a marginal contraction in private sector activity. The services sector has been one of the main drivers of this growth, generating an increase in production and hiring. Stronger demand conditions have contributed to this positive scenario, although inflationary pressures remain high, with input costs rising above pre-pandemic levels. Regarding growth expectations, these have improved in seven of the last eight months, reaching their highest level since February 2022. Eurozone companies have increased employment levels for the fifth consecutive month, with the services sector leading hiring in May. Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, highlights that the rebound in the services sector has been crucial for the eurozone economy to show positive growth in the second quarter. In this sense, the European Central Bank (ECB) could consider cutting interest rates in June, given the favorable outlook and moderation of inflationary pressures. In summary, the eurozone has managed to expand its economic activity at a faster pace in May, with countries like Spain and Germany leading this growth. Despite the challenges that persist in some sectors and inflationary pressure, the growth and employment prospects are encouraging, pointing to a sustained recovery in the region.