Forex Pros – The euro zone’s services sector grew less than initially projected in June, falling to an eight-month low, data showed on Tuesday.
In a report, the market research group, Markit said the final euro zone services business activity index fell to 53.7 in June, down from a preliminary estimate of 54.2.
Analysts had expected the index to remain unchanged from a preliminary estimate of 54.2.
On the index, a level above 50.0 indicates expansion in the industry, below 50.0 indicates contraction.
The index has signaled a slowdown in the sector since hitting a three-and-a-half year high in March. Growth of new business also slowed, hitting a seven-month low.
Italy fell back into contraction for the first time in five months, following the steepest drop in new business for almost two years.
Commenting on the report, Chris Williamson, chief economist at Markit said, “Although growth slowed sharply in France, the pace has merely eased from a rapid rate earlier in the year, meaning France and Germany remain the key drivers of service sector growth in the euro area.”
Following the release of the data, the euro was down against the U.S. dollar, with EUR/USD shedding 0.34% to trade at 1.4489.
Meanwhile, European stock markets were mixed. The EURO STOXX 50 dropped 0.2%, France’s CAC 40 dipped 0.25%, the FTSE 100 eased up 0.15%, while Germany’s DAX gained 0.12%.
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