Euro zone May business growth at year high, PMI shows

LONDON - Euro zone business activity has expanded at its fastest pace in a year this month, supported by buoyant demand for services, while the manufacturing sector showed signs of approaching a recovery, a preliminary survey showed on Thursday.

Overall prices charged rose at their slowest pace since November and the output prices index dropped to 52.5 from 53.7, potentially opening the door to policy easing from the European Central Bank.An index covering the 20-country currency union's dominant services industry held steady at April's 11-month high of 53.3, shy of the poll forecast for 53.5.

The manufacturing PMI jumped to a 15-month high of 47.4 from 45.7, well ahead of the Reuters poll forecast for 46.2. A subindex measuring output showed only a slight contraction there, jumping to 49.6 from 47.3.

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Euro zone business activity grows at fastest pace in almost a year, PMI showsEuro zone business activity expanded at its fastest pace in almost a year last month as a resurgence in the bloc's dominant services industry more than offset a deeper downturn in manufacturing, a survey showed on Monday.
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