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Eurozone Business Activity Grows Ahead of Expected ECB Interest Rate Cut

Business activity in the Eurozone has increased as expected, with the European Central Bank (ECB) likely to announce a 25-basis point cut to the main lending rate. Data from the latest HCOB purchasing managers' index (PMI) shows that private sector output in most Eurozone economies expanded at the fastest rate in a year in May. Growth in Germany, Italy, and Spain outweighed a slight downturn in France, leading to overall positive business activity across the Eurozone. Inflation also cooled during this period, providing further support for the anticipated interest rate cuts by the ECB.

What is the forecast for the ECB interest rate cut?

The forecast is a 25-basis point cut to the main lending rate.

How did business activity grow across the eurozone in May?

Business activity grew across the eurozone at the fastest rate in a year in May.

Which countries showed growth in business activity according to the PMI data?

Germany, Italy, and Spain showed growth in business activity according to the PMI data.

What was the only country that experienced a downturn in business activity?

France was the only country that experienced a downturn in business activity.