Romania Manufacturing PMI compiled by Erste Group’s local subsidiary BCR, has improved for the third consecutive month to 48.3 points in May – remaining in the contractionary region but still enough to support Erste Group’s hopes for mild industrial recovery this year, after three consecutive years of decline.  “Although the index still points to a contraction in manufacturing activity, the continued upward trend is encouraging and may indicate that growth momentum is beginning to build in the domestic manufacturing sector,” Erste Group’s report reads. The PMI readings, as of now, support only hopes for the stabilisation of the industrial activity. The improvement in each main segment of the PMI index was visible over the past three months, but the starting point was very weak (February PMI marked the lowest reading in records), and the May reading remains in the contractionary area.  The Output Index signalled a slower pace of contraction in May, although demand-side challenges remain.