Mubasher: Eurozone business activity sustained its growth in May, despite at a sluggish momentum, according to survey data released on Wednesday.

The final IHS Makit Eurozone purchasing managers’ composite index (PMI), which gauges output, went up to 51.8 last May, from 51.5 in April, marginally rising from earlier reading of 51.6, the IHS Markit finalised survey results showed. This marked the highest reading in three months.

For the third month in a row, the Eurozone private sector posted an increase of new work inflows.

The employment rate remained solid in May, though slower than that in the prior month.

Operating expenses maintained a high level, although inflationary pressures were retreating since April to the second lowest in the past two years and a half.

The service sector growth fuelled the overall business expansion of the Eurozone private sector in May, whereas factory activity posted the fourth monthly decline, as the new work intakes extended their slide.

The Eurozone PMI services business activity index edged up to 52.9 last month, from 52.8 in the preceding month, much better than the preliminary estimate of 52.5.

“Despite output at goods and service providers collectively rising at a slightly faster rate in May, the survey data are merely indicating a modest 0.2% rise in GDP in the second quarter,” IHS Markit chief economist Chris Williamson said.

“Furthermore, there seems little prospect of any immediate improvement: new orders barely rose in May, painting one of the gloomiest pictures of demand seen over the past six years, and companies’ expectations of growth over the coming year likewise fell to one of the lowest in six years,” Williamson noted.

By 10:21 am GMT, the EUR/USD pair rose by 028% to $1.1284.