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Investing.com -- Business activity in the Euro zone saw a marginal expansion in May, as the services sector contracted for the first time since November, as indicated by a survey released on Wednesday.
Decreasing demand, which has been a concern for the bloc for a year, contributed to this slow growth.
The HCOB Eurozone Composite Purchasing Managers’ Index, put together by S&P Global, dropped to 50.2 in May, down from 50.4 in April.
Although this was higher than an initial estimate of 49.5, it marked the weakest level since February.
The index measures business activity across the entire Euro zone, with a reading above 50 indicating expansion and below 50 suggesting contraction.
The services sector, which plays a vital role in the Euro zone economy, contracted for the first time since November.
This contraction, along with the ongoing issue of falling demand, has been a significant factor in the bloc’s economic performance over the past year.
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