Spanish services slowdown eases, outlook up

MADRID, July 3 (Reuters) – Spain’s service sector continued to contract at a substantial rate in June amid a severe recession but the rate of decline eased more than expected and managers showed greater optimism, based on the Markit Purchasing index. The indicator rose to 41.2 from 39.1 in May, which was only the second time since last May that the indicator has sat above 40, and well off November’s record low of 28.2, according to the poll published on Friday. A Reuters survey of 5 analysts had forecast a result of 40, with estimates ranging between 37.5 and 40.50. Service company managers were more optimistic than at any point since December 2007, on hopes of a recovery in the wider…

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