Middle East Conflict Weighs More Heavily On Eurozone PMI

Eurozone PMI dropped to 47.5 in May as the Middle East conflict heightens recession risks and energy shocks. Weakening demand and lack of government support are putting corporate margins under pressure, distinguishing this period from the 2022 crisis.

Key Takeaways

• 1.The Eurozone PMI fell to 47.5 in May, its lowest level since 2023, signaling increased technical recession risks.
• 2.The Middle East conflict is increasingly impacting Eurozone growth through an energy shock, differing from the 2022 crisis due to a lack of government support.
• 3.Weak demand is preventing businesses from passing on high input costs, leading to pressure on corporate margins.

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