Eurozone and Germany PMIs Revised Higher, Signaling Economic Resilience

Key Facts

Reflecting a more robust recovery in the European economy, final Composite PMI readings for the Eurozone and Germany were revised upwards from preliminary estimates. According to S&P Global data, these revisions indicate that business activity across the manufacturing and service sectors showed greater resilience than initially anticipated. This adjustment suggests a strengthening economic momentum as the region moves through the second quarter.

The upward revision aligns with broader positive sentiment data in the region; Eurozone Economic Sentiment reached 93.5 on May 28, 2026, beating the 92.8 forecast per market data. Similarly, Italian Consumer Confidence rose to 93.4 from a previous 90.8, signaling a recovery in domestic demand. This resilience in Europe contrasts with US GDP growth, which was reported at 1.6% as of May 28, 2026, potentially narrowing the growth divergence between the two major economies.

Looking ahead, market participants are closely monitoring the ECB Monetary Policy Meeting Accounts for clues on the future interest rate path, following President Lagarde's speech on May 28, 2026. With Spanish Business Confidence also performing better than expected at -3.7, the focus shifts to upcoming inflation catalysts to determine if the ECB can maintain its policy easing cycle while supporting this renewed economic growth.