Euro zone factory boom lifts rebound hopes

Hopes for an economic rebound in Europe rose on Tuesday (June 1).

That after new numbers showed factory activity expanding at a record pace.

The final Purchasing Managers' Index for May rose to 63.1.

That's up on earlier readings, and the highest level since the survey began in 1997.

It's also way above the 50-point mark that signifies expanding activity.

The gain comes the region emerges from lockdown.

Survey compiler IHS Markit says the figures add to signs the economy is "rebounding strongly".

However, the input prices index also soared, hitting 87.1.

That's easily the highest number on record.

And it means factories are paying more for parts and materials, with some of those costs passed on to consumers.

IHS says price pressures will probably ease off in the coming months though.

It expects supply chains get back to normal functioning as countries lift restrictions.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting