The start of the European session was marked by mixed readings of manufacturing and services PMI data from the European Zone and the UK.
Manufacturing activity in Europe's largest economy, Germany, continued to show a deep contraction in May with a reading of 42.9 from 44.7 previously.
However, service activity on the other hand recorded a slightly stronger expansion to 57.8 this month from 56.0 recorded in April.
As knowledge, the number 50 separates the difference between expansion and contraction of an activity. If the reading above 50 indicates expansion, while below 50 the opposite.
Meanwhile in France, the manufacturing sector also remained contracted little changed at 46.1 from 45.6, while services still expanded at 52.8 from 54.6.
Overall in the European Zone, manufacturing activity continued under contraction to 44.6 from 45.8, while services rose to 55.9 from 56.2.
According to the HCOB which conducted the survey, the contraction in the manufacturing sector to the lowest level since May 2020 was due to the continued fall in demand.
In addition to the European Zone, the UK also released PMI data which saw manufacturing activity also continue to decline to 46.9 from 47.8.
UK services activity continued to grow at 55.1 although slightly down from 55.9 the previous month.
Overall, it shows slow growth but at least this continues to sideline concerns about a recession.
