Forexpros – Germany’s services sector grew at a slower rate than initially expected in May, expanding at the lowest pace in six moths, data showed on Tuesday.
In a report, the market research group, Markit said the final German services business activity index fell to 51.8 in May, down from a preliminary estimate of 52.2.
Analysts had expected the index to remain unchanged from a preliminary estimate of 52.2.
On the index, a level above 50.0 indicates expansion in the industry, below 50.0 indicates contraction.
May’s data pointed to a renewed slowdown in German service sector growth, as falling levels of incoming new work continued to weigh on business activity levels.
Commenting on the report, Tim Moore, senior economist at Markit said that the data points to a “broadly flat GDP” in Germany during the second quarter.
“However, the near-term risks are clearly to the downside, given the ongoing reductions in new business receipts across the manufacturing and service sectors,” he added.
Following the release of the data, the euro remained lower against the U.S. dollar, with EUR/USD shedding 0.4% to trade at 1.2449.
Meanwhile, European stock markets trimmed some gains. The EURO STOXX 50 advanced 0.3%, France’s CAC 40 rose 0.6%, Germany’s DAX was flat, while London’s FTSE 100 was closed for a public holiday.
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