Forexpros – The euro zone’s services sector contracted at a slightly slower rate than initially expected in June, but still shrank for the fifth consecutive month, data showed on Wednesday.
In a report, the market research group, Markit said the final euro zone services business activity index stood at 47.1 in June, up from a preliminary estimate of 46.8.
Analysts had expected the index to remain unchanged from a preliminary estimate of 46.8.
On the index, a level above 50.0 indicates expansion in the industry, below 50.0 indicates contraction.
Despite the modest increase, the index remained deep in contraction territory. The average reading for the second quarter of 2012 was the lowest for three years as a result, according to the report.
The spreading of the economic malaise from the periphery of the currency union to its core continued in June.
German output contracted at the fastest rate in three years in June and France also saw a further decline. Italy and Spain, meanwhile, remained in deep recessions.
Commenting on the report, Chris Williamson, chief economist at Markit said, “The survey points to the economy having contracted by approximately 0.6% in the three months to June.”
Following the release of the data, the euro remained mildly lower against the U.S. dollar, with EUR/USD shedding 0.18% to trade at 1.2585.
Meanwhile, European stock markets were down modestly. The EURO STOXX 50 dipped 0.45%, France’s CAC 40 shed 0.6%, Germany’s DAX slipped 0.35%, while London’s FTSE 100 eased down 0.15%.
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