The HCOB Eurozone Composite PMI was revised higher to 50.2 in May 2025, up from the preliminary estimate of 49.5 but slightly below April’s 50.4. While this marked the fifth straight month of expansion, the overall growth was only marginal, and the weakest since February. Manufacturing was the main driver of output, offsetting the first decline in services activity since November. Among the euro area’s four largest economies, Italy and Spain recorded solid expansions, France moved closer to stabilization, and Germany remained in contraction. New business inflows continued to decline, while job creation remained modest. Backlogs of work fell at a moderate pace. On the price front, input cost inflation slowed to a six-month low, and output charges rose only slightly - the weakest pace since October 2024. Meanwhile, business confidence improved for the first time since January.