Euro zone services activity slipped close to contraction in May, in line with expectations, as growth took a sharp hit in France, while inflationary pressures mounted, a key survey showed on Wednesday. The RBS/NTC Eurozone Services Purchasing Managers index fell to 50.6 in May, the same level as the flash estimate and as forecast by economists, from 52.0 in April.
The rate of expansion in the French services sector was down again in May according to the NTC purchasing managers' index. The index was revised down to 50.5 from a provisional figure of 50.7, compared with a reading of 52.8 in April, and is now only just above the 50 dividing line which separates expansion from contraction.
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