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Euro zone business activity contracts in June

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Euro zone's PMI score, seen as a good gauge of overall economic health, slumped to 49.9 in June from May's 52.8. It was sub-50, the mark which separates growth from contraction, for the first time since December

LONDON, July 5 - Euro zone business activity slipped into contractionary territory last month in a broad-based downturn across the bloc's dominant services industry and a deepening decline of factory output, a survey showed.

That was below the 50 mark separating growth from contraction for the first time since December and shy of a preliminary estimate for 50.3.contracted faster than initially thought and Wednesday's final PMI covering the services industry dropped to 52.0 from 55.1, lower than the 52.4 flash reading. "All major euro countries have again lost considerable momentum. The slowdown in business activity growth was accompanied by a weaker rise in new business, lower price increases and a decline in business expectations," said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.

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