Growth in the euro zone's dominant service sector slowed faster than expected this month and manufacturers tapped the brakes as growth in new orders tailed off, new surveys showed today.
Preliminary purchasing managers' surveys pointed to marginally slower economic growth in the euro zone in the second quarter.
A big divide remains between economic performance in France and Germany, and struggling periphery members of the 17-nation bloc.
However, they will take some cheer from the fact that prices did not rise so steeply this month.
The flash Markit euro zone Services Purchasing Managers' Index fell to 55.4 in May from April's 56.7, its lowest level since December, and missing expectations for 56.5.
This is the 21st month the index, which measures the activities of companies ranging from banks to hotels, has been above the 50 mark that divides growth from contraction.
The flash manufacturing PMI fell to 54.8 from 58.0 in April.
The euro zone composite PMI, a broader measure of the private sector which combines the services and manufacturing data, fell to 55.4 from 57.8, below forecasts for 57.4.
The composite index is often used as a guide to growth and Markit said it was consistent with quarterly growth of 0.7% for the second quarter.
The official euro zone unemployment rate held steady at 9.9% in March.
