Greece Approves Additional Austerity Measures

The flash composite output index fell to 52.9 in May, posting a 16-month low. PMI fell from April's 53.0 reading, indicating a slowdown in the private sector growth, data from Markit showed on Monday. Services were steady at 53.1, missing expectations slightly while flash manufacturing was also weaker, falling to 51.5, down from April's 51.7. Although the flash PMI's are preliminary reports, there is evidence that the Eurozone growth might be tapering to 0.30% after rising 0.50% in the first quarter.

The slowdown in April manufacturing PMI to 50.5 marks a decline in the sector for the first time since September 2009. Dragging the sector lower was a renewed weakness in production which weighed on the headline print. Soft new order growth and cuts to stocks were other pressures dragging the flash PMI lower. According to the data, US manufacturers signaled a decline despite it being only a marginal one but firms in the survey reported the uncertainty on the general economic outlook which caused clients to delay spending decisions.