Euro zone business activity growth slows down in May; PMI down to 53.5

Nathan Andrada – Fourth Estate Cooperative Contributor

Paris, France (4E) – Private sector growth in the euro zone growth slowed more than earlier projected in May, according to the final data from Markit Economics released Wednesday.

The final composite output index dropped to 53.5, down from April’s near-three year high of 54. The reading was projected to fall slightly to 53.9 in May.

The common currency bloc remained on course to post its best calendar quarter of economic expansion for three years, according to Markit.

The services Purchasing Managers’ Index fell to 53.2 from 53.1 in April. The preliminary or flash estimate for May was 53.5.

Markit chief economist Chris Williamson said despite the decline, the euro zone PMI stays firmly in expansion territory and in line with GDP growth of 0.4 percent to 0.5 percent in the second quarter. However, despite the euro area enjoying its strongest performance in three years, the growth is uneven, stuttering and lackluster, said Mr. Williamson.

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