Eurozone services PMI beats expectations, economy still struggles

Eurozone May Markit services purchasing managers’ index surpassed market expectations amid a gloomy economy that seems difficult to move out of low gear.

The Eurozone services PMI advanced to 53.3 from 53.1 reported in the preceding month and the composite went up to 53.1 from 52.9, data released by Markit showed.

"The final PMI numbers for May have come in slightly ahead of the earlier flash readings, but still point a Eurozone economy, which seems unable to move out of low gear," said Chris Williamson, Chief Economist, Markit.

Meanwhile, data across the European Union remained mixed. The Italian services PMI returned back into contraction phase at just 49.8 while the overall composite Italian PMI is hardly holding above the major line at 50.8 is worrying. The French readings also were revised down, however, German and Euro zone data, in turn, were revised higher.

Overall, the Euro area remains overshadowed by gloomy forecasts while additional disappointing releases could lead to the additional concerns over the ECB's failure to announce new measures.