European PMIs: Demand Destruction in Action

May PMI data reveals a sharp contraction in Eurozone and UK economic activity driven by the Iran war's impact on energy prices. Berenberg warns that planned ECB rate hikes could worsen the risk of an unnecessary recession.

Key Takeaways

• 1.The Iran war and subsequent energy price surge have pushed the Eurozone and UK into a state of stagflation.
• 2.Eurozone Composite PMI fell sharply to 47.5 in May, indicating private sector contraction.
• 3.Berenberg views a potential ECB rate hike in June as a mistake that could trigger an unnecessary recession.

Table of Contents

• Iran war takes its toll
• Soft services
• Dear ECB, please watch the data
• French misery
• The bigger picture
• UK joins the downturn
• Disclaimer
• Remarks regarding foreign investors
• United Kingdom
• United States of America
• Copyright

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