By William L. Watts
FRANKFURT (MarketWatch) -- The Markit preliminary composite purchasing managers index reading for the 17-nation euro zone was unchanged at 46.4 in July, signaling a sixth straight month of shrinking private-sector activity across the region. A reading of less than 50 indicates a contraction in activity. Economists surveyed by Dow Jones Newswires had forecast a reading of 46.5. The PMI for the manufacturing sector fell to a 37-month low of 44.1 from 45.1 in June, Markit said, while the services PMI rose to a four-month high of 47.6 from 47.1, but remained in contraction territory. Markit said the fall in output was spread across the euro zone, with German activity shrinking at the fastest pace in three years. "The flash PMI for July suggests the euro area downturn showed no signs of letting up at the start of the third quarter," said Chris Williamson, chief economist at Markit.
