The Euro-Zone February Services PMI was revised up to 39.2 from 38.9 reported initially. This is still sharply lower than the 42.2 reported for January and points to a further acceleration in the pace of contraction in services sector activity. The slight upward revision to the services reading was counterbalanced by the downward revision in the final Manufacturing PMI and the composite reading remained stable at 36.2. This is sharply below the 50 point no change mark and backs expectations for another negative GDP number in the first quarter of the year. It will also add to arguments for a rate cut at tomorrow’s council meeting.
The German Services PMI was revised down to 41.3 from 41.6 reported initially. The French PMI was revised slightly up to 40.2 from 40.1 and the Italian Services PMI, which was released for the first time, dropped to 37.9 in February, from 41.1 in the previous month. All big three Euro-Zone countries report contractions in services activity and data backs expectations for another quarter of negative GDP growth in Q1