By William L. Watts
FRANKFURT (MarketWatch) -- Private-sector activity across the 17-nation euro zone contracted at its fastest pace in three years last month, according to the final May reading of the Markit euro-zone composite purchasing managers' index released Tuesday. Composite PMI fell to 46.0, up slightly from a preliminary reading of 45.9, but down from 46.7 in April. The final May services PMI reading fell to 46.7 from 46.9 in April. A preliminary reading came in at 46.5. A reading of less than 50 indicates a contraction in activity. "Based on these numbers, it would not be surprising to see GDP for the region contract by 0.5% in the second quarter, though an even steeper decline could be seen if the June data disappoint," said Chris Williamson, chief economist at Markit.
