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Eurozone Private Sector Activity Expands More Than Estimate

The euro area private sector expanded more than initially estimated in May, extending the current sequence of growth to just below six years, final data from IHS Markit showed Wednesday.

The composite output index rose to a 3-month high of 51.8 in May from 51.5 in April. The reading was slightly above the flash 51.6.

Despite output at goods and service providers collectively rising at a slightly faster rate in May, the survey data are merely indicating a modest 0.2 percent rise in GDP in the second quarter, Chris Williamson, chief business economist at IHS Markit said.

The impetus to overall euro area growth was provided by the service sector. In contrast, manufacturing output fell for the fourth consecutive month.

The final services PMI climbed slightly to 52.9 from 52.8 in April. The flash reading was 52.5.

By country, Germany saw growth improving to a three-month high. At 52.6, the latest composite PMI reading was up from 52.2 in April. The score for May was revised up from 52.4.

Likewise, the services PMI came in at 55.4, up from 55.7 in April and the flash 55.0.

In France, PMI suggested moderate rise in private sector output that was the fastest since last November.

France's composite PMI advanced to 51.2 in May from 50.1 in the previous month. The reading was slightly above the flash 51.3. Similarly, the services index improved to 51.5 from 50.5 in April. The flash reading was 51.7.

Italy remained just inside contraction territory for a second successive month and Spain continued to expand solidly.

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