Euro-Area July Services Output Contracts Less Than Estimated

Euro-area services output shrank at a slower pace than initially estimated in July, adding to evidence the economy is gathering strength to pull out of a record-long recession.

An index of activity in the services industry based on a survey of purchasing managers rose to 49.8 from 48.3 in June, London-based Markit Economics said in a report today. That’s above an initial estimate of 49.6 on July 24. A reading below 50 indicates contraction.