The European Manufacturing PMI came in as expected at 50.6, slightly lower than last month’s read of 50.7. The European Service side of the economy expanded at a slower pace compared with last month. The May number was 50.6 compared with 52.0 in April. Analysts’ estimate for May was 51.7. European Manufacturing and Services Industries are now on the borderline between expansion and contraction signaled by the 50-point level. The stronger Euro, tighter financing, and international uncertainty are making the business environment in the Euro Zone less attractive. Separate report The Services Purchasing Manager’s Index for Germany declined further, with a read of 53.7 versus analyst’s estimate of 54.0. Compared with last month, the May read is much lower, 53.7 compared with 54.9 in April. Although both reads are above the 50-point line, which indicates expansion, the numbers indicate a slowdown in Germany’s purchasing activity. A slowdown in economic activity from last quarter may now be in store for Germany.
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