Investing.com - Private sector economic activity in the euro zone accelerated at the slowest pace in 18 months in May, according to survey data released on Wednesday.
The disappointing report was likely to push back expectations of monetary tightening by the European Central Bank even further as recent economic figures suggest cooling momentum.
Markit said that its Flash Euro Zone Composite Output Index, which measures the combined output of both the manufacturing and service sectors, registered a reading of 54.1 this month, an 18-month low and down from 55.1 in April.
Economists had forecast a reading of 55.0.
The flash services purchasing managers’ index declined to a 16-month low of 53.9 this month from 54.7 in April.
That was below expectations for a reading of 54.7.
The preliminary euro zone manufacturing purchasing managers’ index inched down to a 15-month low of 55.5 this month from a final reading of 56.2.
Analysts had expected the index to slip to 56.1.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
Commenting on the report, Chris Williamson, Chief Economist at Markit said that while business activity was adversely affected by an unusually high number of public holidays this month, "it’s likely that the disappointing May survey results will rekindle some concerns regarding downside risks facing the euro area economy."