Eurozone business activity close to four-year low: Survey
Business activity in the 15 nations sharing the euro slumped to the lowest level since July 2003, according to a widely watched survey on Wednesday.
By Agencies |
BRUSSELS: Business activity in the 15 nations sharing the euro slumped to the lowest level since July 2003, according to a widely watched survey on Wednesday.
NTC Economic's eurozone's purchasing managers' index (PMI) pulled back to 51.1 points in May from 51.9 in April, confirming an initial estimate. A figure above the 50-point level indicates a growth in activity, while any figure below it signifies a contraction.
Firm business activity in Germany, and to a lesser extent in France, failed to offset weakness in Italy and Spain, according to the survey. NTC also said that its eurozone PMI for the service sector fell dangerously close to the 50-point level in May, slipping back to 50.6 points from 52.0 points in April, also unchanged from an initial estimate.
Economists said that the data cast a pall over the economic outlook for the eurozone. "The weak services purchasing managers' survey adds to the growing evidence that eurozone economic activity is now slowing significantly following the surprisingly robust ... expansion in the first quarter," economist Howard Archer said at consultants Global Insight.
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