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Eurozone PMI drops to 16-month low in May Dhwani Mehta

10:46 23 May /2016 Forex

The Markit Composite PMI for the Euro area's manufacturing and services sectors came in at 52.9 in May, slightly lower from the 53.0 seen previously. Market had predicted for a slight uptick to 53.2 in May.

While separately Eurozone manufacturing PMI dropped to 51.5 in May compared to 51.7 seen in the previous month, short of 51.9 expectations. Meanwhile, the euro zone services PMI remained unchanged at 53.1. Markets estimated a slight improvement to 53.3 in May.

Chris Williamson, chief economist at Markit noted, "A disappointing flash Eurozone PMI for May adds further to the suggestion that the robust pace of economic growth seen in the first quarter will prove temporary. The PMI is signalling lacklustre GDP growth of only 0.3% in the second quarter."

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