(MENAFN– ecpulse) Euro area composite of manufacturing and services was little changed this month as the improvement in services offset the drop in manufacturing.
PMI composite came in at 53.9 from 54.0 in April, moving in line with analysts’ forecasts.
Manufacturing sector’s growth narrowed to 52.5 from a previous of 53.4, while the services gauge climbed to a 35-month high of 53.5 from 53.1.
The data provide some hopes that recovery will hold its strength in the second quarter after growth stalled in the first quarter at 0.2 percent.
The main contribution came from the region’s biggest economy as the services sector widened expansion to 56.4 from 54.7 in April, whilst the manufacturing measure retreated to 52.9 from 54.1.
It seems that Germany will continue to give support to euro area’s growth as other nations struggle to remain on recovery trajectory.
French manufacturing unexpectedly dropped to 49.3 from a preceding of 51.2 and services plunged to 49.2 from 50.4.
The ECB decided to hold its monetary stance this month but economists predict further addition to stimulus when policymakers meet on June 5.
The low inflation, currently at 0.7 percent, is probably the key challenge facing the ECB.
The central bank is ready to take action next month to combat any deflationary pressures, ECB President Mario Draghi said this month.
The euro resumed its drop for a third straight session against the green currency after Fed minutes signaled that stimulus reduction plan would continue.
As of 08:18 GMT, the EURUSD traded around 1.3670 after touching a low of 1.3653 and a high of 1.3686.
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