Forexpros – The euro zone’s services sector grew less than initially projected in November, contracting for the third consecutive month, data showed on Monday.
In a report, the market research group, Markit said the final euro zone services business activity index fell to 47.5 in November, down from a preliminary estimate of 47.8.
Analysts had expected the index to remain unchanged from a preliminary estimate of 47.8.
On the index, a level above 50.0 indicates expansion in the industry, below 50.0 indicates contraction.
France, Italy and Spain all saw lower activity. However, the decline in France was only modest and substantially less than that seen in October, while Italy also saw a slower contraction.
The downturn in Spain’s service sector deepened, with output falling at the fastest pace since March 2009.
Only Ireland and Germany reported higher activity. The rate of expansion in Ireland picked up to a nine-month high but, in Germany, growth remained only very modest and in sharp contrast to the strong pace seen in the first half of the year.
Commenting on the report, Chris Williamson, chief economist at Markit said, “The euro area’s huge services economy, encompassing businesses as diverse as airlines, accountants, telecoms, restaurants and banks, is sliding back into recession.”
“Service providers remained worried about the impact of the escalating debt crisis and the darkening economic outlook,” he added.
Following the release of the data, the euro remained higher against the U.S. dollar, with EUR/USD gaining 0.37% to trade at 1.3442.
Meanwhile, European stock markets were up after the open. The EURO STOXX 50 jumped 1.05%, France’s CAC 40 rose 1%, the FTSE 100 added 0.25%, while Germany’s DAX gained 0.55%.
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