European sectors showed weak performance in May, with only seven of 19 monitored industries recording business growth—the lowest since July 2024, according to the latest S&P Global Europe Sector PMI. Manufacturing segments faced renewed contractions, dragging down overall results amid soft demand. Construction materials led growth for a second straight month, followed by machinery & equipment. Meanwhile, chemicals, forestry & paper products, automobiles & auto parts, and beverages & food continued to decline. The technology sector held up better, with slower drops in technology equipment and ongoing growth in software & services. New orders rose in just four sectors—the fewest since November 2023—while hiring gains were mostly confined to services. Selling price increases softened in eight of 13 sectors that raised prices. Tourism & Recreation saw the fastest input cost inflation but at a slower pace than earlier this year, passing higher costs on through the steepest output price rises among sectors. Attribution: Amwal Al Ghad English Subediting: M. S. Salama
