Eurozone services output exceeds estimates

Eurozone services output expanded more than initially estimated in September, as the 17-nation currency bloc’s economic recovery gained momentum.

An index based on a survey of purchasing managers in the services industry rose to 52.2, exceeding a Sept 23 estimate of 52.1 and up from 50.7 in August, London-based Markit Economics said. The gauge has been above 50, indicating growth, for two months.

The services data come after the eurozone economy emerged from its longest-ever recession in the second quarter and economic confidence rose for a fifth month in September. The jobless rate fell to 12% in July from a record 12.1% a month earlier, and held at that level in August.

At the same time, economists in a Bloomberg News survey see growth slowing to 0.2% in the third quarter after a 0.3% expansion in the three months through June.

Economists surveyed by Bloomberg predict the unemployment rate will peak at 12.3% by the end of this year before falling to 12% in 2015.

Eurozone factory output expanded for a third month in September, though the index slipped to 51.1 from 51.4 in August, Markit said on Oct 1.