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Update: Flash PMI: Eurozone Private Sector Activity Further Contracts in May Amid Rising Cost Pressures

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(Updates to add more information)

The euro area's private sector economy stayed in contraction territory for the second straight month, as escalating cost pressures drove sharper drops in production and new orders.

The S&P Global Flash Eurozone Composite PMI Output Index hit a 31-month low of 47.5 in May, lower than the previous and expected 48.8, flash data from S&P Global showed Thursday. The reading marks a sharp decline in monthly business activity, particularly in France.

Meanwhile, the services PMI reached a 63-month low of 46.4, compared with the earlier reading of 47.6 and the Investing.com consensus estimate of 47.8. On the manufacturing side, the PMI stood at a three-month low of 51.4, from the prior month's 52.2 and market forecast of 51.7.

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