23.06.201704:31:00UTC+00Eurozone Private Sector Growth At 5-Month Low

The euro area private sector grew at the slowest pace in five months in June, flash survey data from IHS Markit showed Friday.

The composite output index fell to 55.7 in June from a joint six-year high of 56.8 in May. The score was forecast to drop moderately to 56.6.

However, at 56.4, the average PMI reading for the second quarter was above the reading of 55.6 seen in the first three months of the year and was the highest since the first quarter of 2011.

Despite the June dip, the average expansion in the second quarter has been the strongest for over six years and is historically consistent with GDP growth accelerating from 0.6 percent in the first quarter to 0.7 percent, Chris Williamson, chief business economist at IHS Markit, said.

The services Purchasing Managers' Index declined more-than-expected to 54.7 from 56.3 a month ago. The expected reading was 56.1.

Meanwhile, the manufacturing PMI rose unexpectedly to 57.3 in June from 57.0 a month ago. The reading was forecast to fall to 56.8.

Slower growth was recorded in both France and Germany, down to five- and four-month lows respectively, largely reflecting weaker rates of service sector expansion, survey data showed.