EUROPE BUSINESS NEWS|MAY 23, 2011, 4:36 A.M. ET
Euro-Zone Growth Slows to 7-Month Low
By NICHOLAS WINNING
LONDON—Growth in the euro zone's private sector eased more than expected to its weakest pace in seven months in May, led by a sharp slowdown in manufacturing, the preliminary results of a survey by financial-information firm Markit showed Monday.
The flash reading of the euro zone's composite-output index, a gauge of activity based on partial results of a survey of manufacturing and services firms, dropped to 55.4 in May from 57.8 in April. A reading above the 50 level indicates an expansion in activity.
The level of activity is in line with the average of last year, but the fall in the main index was the sharpest since November 2008, Markit said. Economists were expecting the headline reading to drop to 57.4.
The manufacturing-purchasing-managers' index dropped much more than expected to 54.8 in May, from 58.0 the previous month, while the euro-zone services-business-activity index fell to a five-month low of 55.4, from 56.7 in April.
Economists had predicted a manufacturing reading of 57.5 and an unchanged services reading of 56.7.
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