Europe Manufacturing Shrinks, German Confidence Drops

European manufacturing and services output dropped in May, German business confidence declined and Britain’s first-quarter contraction was deeper than previously estimated as the region’s economic slump worsened.

A composite index based on a survey of purchasing managers in the services and manufacturing industries in the 17-nation euro area fell to 45.9 from 46.7 in April, London-based Markit Economics said today. Germany’s business climate index decreased to 106.9 from 109.9 in April and U.K. gross domestic product fell 0.3 percent in the first quarter instead of 0.2 percent estimated earlier, reports showed today.