Pace of Eurozone contraction slows in May

*Eurozone composite PMI in-line with expectations
*German services PMI in-line with expectations
services PMI in-line with expectations
services PMI misses expectations

The Eurozone composite purchasing managers' index (PMI) figure has risen in-line with expectations from 46.9 to 47.7 in May. There has been no change since the earlier flash reading of 47.7. The euro is slightly down against the dollar.

This week has already seen a strong set of Eurozone manufacturing data, as despite being in decline as a whole, the pace of contraction in Eurozone manufacturing has slowed.

A figure below 50 implies the area is still shrinking, and the higher figure that the pace of contraction has slowed. Eurozone services rose from just 47.0 to 47.2, while forecasters had suggested a rise to 47.5.

Italy's service sector is contracting more rapidly in May as its PMI dropped from 47.0 to 46.5. Economists had forecast an improvement to 47.5.

French PMI came in in-line with expectations at 44.3, with no change from the previous month with Germany seeing a very slight uptick from 49.6 to 49.8.

The Spanish services sector has beaten expectations with a near two year high, seeing a strong PMI of 47.3 from 44.4 last month. Analysts had expected a rise to just 45.0.