2018.05.2319:24:00UTC+00Eurozone Business Activity Extends Slowdown in May

Business activity in the eurozone slowed for the fourth consecutive month in May, according to a survey of manufacturers and service providers, an indication that economic expansion has yet to bounce back from a suddenly weak showing in the first quarter.

The Euro Zone Composite Flash Purchasing Managers' Index (PMI), seen as a good guide to economic activity, tumbled in May to an 18-month low of 54.1 from 55.1.

While the growth still remained relatively solid, expansion slowed to a 20-month low in the bloc's largest economy, Germany, and the lowest in a year in a half in No. 2 economy France, according to the latest IHS Markit purchasing managers' surveys.

The euro dropped to a six-month low after the German PMI data, which are released before the euro zone numbers, raised concerns a slowdown in Europe's biggest economy in recent months was more widespread than initially thought.

The eurozone ended 2017 on a high, but has stumbled since the start of the year as bad winter weather hit output. Forward-looking indicators in the PMIs also deteriorated, suggesting no imminent rebound.

A composite output price index dropped to an eight-month low of 53.0 from 53.4. Euro zone inflation slowed to 1.2 percent in April, official data showed last week, moving further away from the ECB's two percent target ceiling.