"Companies report business activity to have been hit by heightened political and economic uncertainty"
- Chris Williamson, chief economist at Markit
Eurozone services and manufacturing output contracted in May, adding to signs the economy is worsening. A composite index measuring activity in both industries declined to 46 from 46.7 in April, said Markit Economics on Tuesday.
The data point "to markedly contracting activity and further weakness ahead," said Howard Archer, chief European economist at IHS Global Insight in London.
"It is odds-on that the euro zone is headed for renewed and appreciable contraction in the second quarter."
"Companies report business activity to have been hit by heightened political and economic uncertainty, which has exacerbated already weak demand both in the euro area and further afield," Chris Williamson, chief economist at Markit, said. "Based on these numbers, it would not be surprising to see GDP for the region contract by 0.5 percent in the second quarter."
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