Growth across the euro zone slowed for the second month in a row in June, led by a slowdown in new orders, well-watched research showed today.
Euro area business activity was still higher but the purchasing managers' index (PMI), compiled by data and research group Markit, fell to 56 in June, down slightly from May and the post-recession peak of 57.3 in April.
Any score above the 50-point line indicates economic growth.
Such results will feed fears that the unpopular austerity measures being introduced by European government are failing to boost growth.
The London-based Markit report said that current pace of growth 'remains insufficient to drive further rises in employment.'
Markit chief economist Chris Williamson said 'the downturns in growth of output, new orders and exports towards the end of the quarter suggest that economic growth will moderate as we move into the second half of the year.'
That could mean 'the growth of employment could lose momentum in coming months, highlighting the region's ongoing dependence on exports rather than domestic demand to sustain the recovery,' he warned.
The good news is that the index remained above 50 points for the 11th consecutive month, however.
In the services sector, the PMI index fell to 55.4 from 56.2 points in May. The manufacturing index also dropped, slightly, to 55.6 points from 55.8, its lowest rate in fourth months.
