STORY: The pain of rising inflation in the euro zone was seen clearly in the manufacturing sector as growth slowed last month.
S&P Global said Wednesday (June 1) its final manufacturing Purchasing Managers’ Index fell to 54.6 from April’s 55.5 - its lowest in more than a year and half.
S&P blamed the fall on a number of factors, including supply shortages, inflationary pressure and a fall in demand.
It also suggested people have started spending on tourism and recreation following years of health crisis restrictions.
But it wasn’t a fully rosy picture for services, either - with inflation again proving a drag.
The May flash services PMI dipped from 57.7 to 56.3, which implied growth also slowed in that sector.
Official data released Tuesday showed Euro zone inflation rose to a record high of 8.1% in May.
However, inflation wasn’t the only problem for Europeans.
Supply chains which had just started to recover from the health crisis were hit hard by the conflict in Ukraine.
The parts shortage has left factories paying higher costs for the raw materials they need and passing it onto consumers - that in turn has weakened demand.