By William L. Watts
FRANKFURT (MarketWatch) -- Private-sector activity across the 17-nation euro zone continued to contract sharply in June but at a somewhat slower pace than in May, according to the Markit composite purchasing managers' index for the region released Wednesday. The index rose to 46.4 from 46.0 in May and came in above a preliminary June reading of 46.0. A figure below 50 indicates a contraction in activity. The services index rose to 47.1 from 46.7 in May and came in above the preliminary estimate of 46.8. Earlier this week the euro-zone manufacturing PMI held steady at 45.1. "The final euro-zone PMI for June picked up slightly on May, but the rise failed to avoid the region seeing the strongest quarterly downturn for three years in the second quarter," said Chris Williamson, chief economist at Markit. The data point to a 0.6% contraction in gross domestic product in the second quarter, he said.
