Euro-Area Services Output Expands More Than Estimated

Euro-area services output grew more than initially estimated in October, adding to signs the currency bloc’s economic recovery is gaining momentum.

An index based on a survey of purchasing managers in the services industry fell to 51.6 from 52.2 in September, London-based Markit Economics said today. That exceeds Markit’s initial estimate of 50.9. The gauge has been above 50, indicating expansion, for three months.

The euro-area economy probably grew 0.2 percent in the third quarter after exiting a record long recession in the previous three-month period, according to a Bloomberg News survey of 31 economists. The European Commission yesterday trimmed its forecast for euro-zone growth next year to 1.1 percent from its 1.2 percent prediction in May.

Markit’s composite index based on a survey of purchasing managers in the services and manufacturing industries dipped to 51.9 from 52.2 in September, today’s report showed. The manufacturing gauge was unchanged at 51.3.

“The euro-area economic recovery lost less momentum than first estimated in October,” Chris Williamson, Markit’s chief economist, wrote in today’s report. “The survey signals a mere 0.2 percent quarterly growth rate at the start of the fourth quarter, unchanged on the third quarter.”

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