Investing.com - Euro zone private sector activity held steady at a six-year high in May, according to data released on Tuesday.
The preliminary reading of the Markit manufacturing purchasing managers’ index came in at a more than six-year high of 57.0 this month from 56.7 in April.
Economists had expected a reading of 56.5.
The services PMI ticked down to a two-month low of 56.2 from 56.4 a month earlier, compared to expectations for an unchanged reading.
The composite output index, which measures the combined output of both the manufacturing and service sectors was unchanged from the previous months reading of 56.8, compared to expectations for 56.6.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
“The PMI data indicate that euro zone growth remained impressively strong in May. Business activity is expanding at its fastest rate for six years so far in the second quarter, consistent with 0.6- 0.7% GDP growth.”
"The consensus forecast of 0.4% second quarter growth could well prove overly pessimistic if the PMI holds its elevated level in June,” Chris Williamson, chief business economist at survey compiler Markit said.
EUR/USD was at 1.1242 from around 1.1252 ahead of the release of the data, while EUR/GBP was at 0.8664 from 0.8663 earlier.