Eurozone service sector contracted in February

Activity of the service sector in the 17-nation currency bloc contracted further in February, however, at a slower pace than previously, according to the Markit Economics. The Purchasing Managers' Composite Index stood at a revised 47.9 last month, up from the initial reading of 47.3, but still well below compared to 48.6 in January and further away from the break-even mark of 50. That was the thirteenth consecutive month, when the reading stood below the 50 threshold. The final release of region's PMI survey is proving that the Eurozone's gross domestic product is still contracting. The region recorded a 0.6% drop in economic output in the last three months of 2012, and latest data are suggesting that region's economy is expected to contract further in the first quarter of 2013, before recording a marginal growth in the second quarter.

"It should be noted that the survey was conducted during the first half of February and, therefore, does not reflect the recent political uncertainty generated by the parliamentary elections," Anatoli Annenkov, an economist with Societe Generale Global Economics in London, said.