Friday, 3 July 2009

DATA SNAP: Euro-Zone Output Decline Slows Further In June

DATA SNAP: Euro-Zone Output Decline Slows Further In June

LONDON (Dow Jones)--The contraction in euro-zone output slowed for the fourth consecutive month in June, but a stronger decline in the services sector cast a cloud over the strength of the economic recovery, final data from Markit Economics showed Friday.

The final reading of the Markit euro-zone composite output index rose to a nine-month high of 44.6 from 44.0 in May, slightly above the flash June estimate 44.4.

Nevertheless the gauge of private sector activity across the whole economy remained below the neutral 50 mark, indicating that output declined for the 13th consecutive month in June. A reading above 50.0 indicates an expansion, while a reading below 50.0 indicates a contraction.

Furthermore, Markit said its services business activity index fell to 44.7 in June from 44.8 in May - signalling a slight acceleration in the rate of contraction in the sector.

Market participants were expecting the composite PMI to rise to 44.4 and the services index to increase to 44.5, according to a Dow Jones Newswires survey of economists last week.

-By Nicholas Winning, Dow Jones Newswires; +44 207 842 9498; nick.winning@dowjoens.com

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(END) Dow Jones Newswires

July 03, 2009 04:23 ET (08:23 GMT)


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