EZ final PMI contracts less than expected

Eurozone business activity contracted less than initially thought in December, according to a final PMI survey reading released on Wednesday.

S&P Global's final composite Purchasing Managers' Index (PMI) for the signle currency bloc rose to 49.3 in December from November's 47.8 and above a preliminary estimate of 48.8.

A reading of below 50 indicates contraction, and while the index has been below this mark since July, the latest reading was its highest in five months.

"The euro zone economy continued to deteriorate in December, but the strength of the downturn moderated for a second successive month, tentatively pointing to a contraction in the economy that may be milder than was initially anticipated," said Joe Hayes, senior economist at S&P Global Market Intelligence.

"Nevertheless, there is little evidence across the survey results to suggest the eurozone economy may return to meaningful and stable growth any time soon."

The PMI new business index recovered to 47.0 from 45.8, comfortably above the 46.5 flash estimate.

In services, which is a major economic sector within the bloc, the PMI came in at 49.8 compared to November's 48.5. The preliminary estimate was 49.1.

Reporting by Frank Prenesti for Sharecast.com