Netherlands

The final May PMI data paint a mixed picture for the Eurozone economy.

The HCOB Eurozone Services PMI rose to 47.7, comfortably above the 46.4 forecast and slightly higher than April's 47.6. While this is an improvement, the index remains below the 50 threshold, indicating that the services sector is still contracting, albeit at a slower pace.

More importantly, the HCOB Eurozone Composite PMI, which combines manufacturing and services activity, came in at 48.5. This was stronger than the 47.5 consensus estimate but slightly below April's 48.8.
Eurozone inflation accelerated in May, reinforcing concerns that underlying price pressures remain persistent despite the European Central Bank’s easing efforts. Headline CPI rose 3.2% year-over-year, matching expectations and increasing from 3.0% in April, while monthly inflation slowed sharply to 0.1% from 1.0% previously.

More importantly for policymakers, core inflation—which excludes volatile food and energy prices—climbed to 2.5% year-over-year, exceeding expectations of 2.4% and accelerating from 2.2% in April. The stronger-than-expected core reading suggests that underlying inflationary pressures remain more stubborn than anticipated.
Eurozone manufacturing activity remained in expansion territory in May, but the pace of growth slowed more than expected. The HCOB Eurozone Manufacturing PMI declined to 51.6 from 52.2 in April, although it still came in slightly above economists' expectations of 51.4.
Eurozone business activity weakened further in May, with the HCOB Services PMI falling to 46.4 from 47.6, missing expectations of 47.8 and signaling a deeper contraction in the services sector. Meanwhile, the HCOB Composite PMI declined to 47.5 from 48.8, also below forecasts of 48.8, indicating that overall private sector activity across the eurozone continued to deteriorate. The figures point to slowing economic momentum and reinforce concerns about weak growth conditions in the region.
Eurozone inflation accelerated to 3.0% year-over-year in April, matching expectations and rising from 2.6% previously, while core inflation eased slightly to 2.2% from 2.3%, in line with forecasts.
Eurozone Trade Surplus Narrows in March

The Eurozone recorded a trade surplus of €7.8 billion in March, above market expectations of €5.4 billion but down from the previous €11.1 billion surplus.
Eurozone economic growth slowed further in the first quarter, confirming weak momentum across the region.

Eurozone GDP (QoQ, Q1): +0.1%
Expected: +0.1%
Previous: +0.2%

Eurozone GDP (YoY, Q1): +0.8%
Expected: +0.8%
Previous: +1.2%
Eurozone business activity moved back into contraction territory in April as both the services and broader private-sector economy weakened significantly. The HCOB Eurozone Services PMI fell to 47.6 from 50.2 in March, while the Composite PMI dropped to 48.8 from 50.7.
The eurozone manufacturing sector continued its expansion in April, confirming a steady recovery trend.

The HCOB Eurozone Manufacturing PMI came in at 52.2, in line with expectations and up from 51.6 in March. Staying above the 50 threshold indicates that manufacturing activity is still expanding across the region.

This reading reinforces the broader pattern seen in individual countries. Spain and France showed strong improvements, Italy maintained steady growth, and even Germany, despite some loss of momentum, remained in expansion. The combination points to a more synchronized and resilient recovery rather than isolated gains.

From a macro perspective, this suggests that the eurozone manufacturing cycle is moving out of its earlier slowdown phase and into a moderate growth phase. Demand conditions appear to be stabilizing, and industrial production is likely to contribute more positively to overall economic growth in the second quarter.

For markets, the data is generally supportive for European equities, especially in industrial and cyclical sectors, and provides a mild positive backdrop for the euro. It also slightly reduces the urgency for aggressive easing by the European Central Bank, as growth momentum is improving.

Overall, the data confirms that the eurozone manufacturing recovery is intact, with increasing consistency across major economies, even if some differences in momentum remain.
The European Central Bank left its key interest rate unchanged at 2.15% in April, in line with expectations and unchanged from the previous level.
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