FX:Euro zone final services PMI revised lower in August
Forexpros - Service sector activity in the euro zone contracted at a slightly faster rate than initially estimated in August, revised data showed on Wednesday.
In a report, market research group Markit said that its revised services purchasing managers’ index fell to a seasonally adjusted 47.2 in August from a preliminary reading of 47.5.
Analysts had expected the index to remain unchanged from a preliminary reading of 47.5.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
Commenting on the report, Rob Dobson, Senior Economist at Markit said, “The final August PMI came in only slightly below its earlier flash estimate, leaving the euro zone economy on course to fall back into technical recession in the third quarter.”
Following the release of the data, the euro added to losses against the U.S. dollar, with EUR/USD dipping 0.36% to trade at 1.2522.
Meanwhile, European stock markets extended losses. The EURO STOXX 50 fell 0.6%, France’s CAC 40 shed 0.65%, London’s FTSE 100 declined 0.5%, while Germany's DAX dipped 0.25%.
