The service sector in the euro area contracted less than initially estimated in June, data from a survey by Markit Economics showed Wednesday.
The purchasing managers' index (PMI) for the service sector came in at 47.1 in June, up from 46.8 recorded in the preliminary estimates. The latest figure was also higher than May's reading of 46.7. A PMI reading below 50 suggests contraction in the sector, while one above signals growth.
New orders in the service sector decreased at the slowest pace in three months in June. Employment fell across the region's services economy for the sixth month running in June, reflecting weakening outlook for the sector.
Input costs rose at the slowest pace since July 2010, while strong competition and weak demand drove down service providers' output charges for the seventh month running, data showed.
At the same time, the composite output index, which gauges performance of both the manufacturing sector as well as the service sector, rose to 46.4 in June from 46 in May. The flash estimate matched the May reading. The latest reading marked the fifth consecutive fall in activity as the region has been hit by debt and political crises.
by RTT Staff Writer
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