FOREX UPDATE

DATA SNAP: Euro-Zone Output Decline Eases Further In July By Nicholas Winning Of DOW JONES NEWSWIRES LONDON (Dow Jones)--The contraction in euro-zone economic output eased more than expected in July to its weakest rate for 11 months, another sign that the severe slump in the 16-nation currency area is bottoming out, data from Markit Economics showed Wednesday. The final reading of the euro-zone composite output index -a closely-watched gauge of economic activity -rose to 47.0 in July from 44.6 in June. Nevertheless, it remained below the neutral 50.0 level, indicating that output has contracted for a 14th consecutive month. A reading below 50 indicates a drop in output while a reading above indicates an expansion. Markit also said the services business activity index rose to a 10-month high of 45.7 in July from 44.7 in June. On Monday it said the purchasing managers' index for the manufacturing sector had recovered to an 11-month high of 46.3 in July from 42.6 in June. Economists were expecting the composite measure to increase to 46.8 in July, in line with the flash estimate, according to a Dow Jones Newswires survey of economists last week. -By Nicholas Winning, Dow Jones Newswires, +44 207 842 9498; nick.winning@dowjones.co -0-
(MORE TO FOLLOW) Dow Jones NewswiresAugust 05, 2009 04:24 ET (08:24 GMT)Copyright 2009 Dow Jones & Company, Inc.