Euro-zone composite PMI falls to 20-month low (by William L. Watts)

FRANKFURT (MarketWatch) -- Private-sector growth across the 17-nation euro zone in June was the weakest since October 2009, led by a sharp slowdown in manufacturing activity, according to preliminary purchasing managers index data released Thursday. The Markit euro-zone PMI composite index fell to 53.6 in June, a 20-month low, from 55.8 in May. Economists had forecast a smaller decline to 55.6. A reading of more than 50 indicates growth in activity, while a figure of less than 50 signals contraction. Manufacturing PMI fell to an 18-month low of 52.0 from 54.6 in May. Services PMI declined to a six-month low of 54.2 from 56.0 in May. "The euro area's economic growth surge has lost momentum at a worrying rate in the past two months," said Chris Williamson, chief economist at Markit. "While the average PMI reading for the second quarter as a whole suggests that the economy grew by around 0.6%, down from 0.8% in the first quarter, the reading for June was consistent with a quarterly growth run rate of just 0.4%."