03.06.201608:34:00UTC+00Eurozone may Final Services Pmi Rises As Services, Output Continue to Improve

Eurozone’s May final services Purchasing Managers’ Index rose as services and output improved during the second quarter, while manufacturing saw a decline, along with a growth of new business.

The final Eurozone services business activity index posted 53.3 in May, above the flash estimate of 53.1 and exceeding April reading of 53.1. Simultaneously released were final Eurozone composite output index figures, which edged higher to 53.1, improving from the flash estimate of 53.9 and higher from a reading of 53.0 in April.

Markit reported output growth to be subdued, with the rate of expansion in Q2 slightly below what was seen in Q1. New Business growth fell to a 16-month low, while output saw some growth, data released by Markit showed.

Growth in output sees Italy continue to lag with a 17-month low reading of 50.8. Germany, France and Ireland have improved in output growth for at least two consecutive months.

Meanwhile, Germany, France, Spain and Ireland witnessed accelerated growth in services while Italy lagged little behind for the first time since December 2014.

"The final PMI numbers for May have come in slightly ahead of the earlier flash readings, but still point a Eurozone economy, which seems unable to move out of low gear," said Chris Williamson, Chief Economist, Markit.