Growth in euro zone manufacturing rose to its strongest in almost six years last month on the back of improving demand in Germany and France, a survey of around 3,000 firms showed this morning.
The RBS/NTC Eurozone Purchasing Managers' Index, which tracks changes in manufacturing activity, rose to 57 in May, its highest since August 2000 when the index was at 58.2, from 56.7 in April.
The index moved further above the key 50 mark that divides growth from contraction and beat consensus forecasts for a slight dip in the headline index to 56.5.
But the survey also showed rising inflationary pressures in the 12-nation euro bloc, which follows a sharper-than-expected rise in official euro zone inflation data on Wednesday to an annual rate of 2.5 per cent in May.
The equivalent US survey, due to be released by the Institute for Supply Management at 2pm, is expected to show manufacturing activity eased to 55.5 from 57.3 in April, which may dent demand for euro zone exports in the months ahead.
Manufacturing activity also grew at a slower pace in Japan for the third consecutive month. The NTC/Research/Nomura/JMMA PMI slipped to 55.3 in May from 55.5.