Private sector activity in the Eurozone expanded at a slightly slower pace in May, with the composite Purchasing Managers' Index (PMI) declining by 0.2 points from the previous month to stand at 50.2, hitting a three-month low, according to an S&P Global and Hamburg Commercial Bank (HCOB) report published on Wednesday. Meanwhile, the Services PMI Business Activity Index entered contraction territory, decreasing to 49.7 in the reported month and reaching a six-month low.

"The European Central Bank will not be entirely satisfied with the PMI price data. In the services sector, which is closely watched for inflation, the rate of increase in sales prices fell again. However, the situation has worsened somewhat with regard to cost increases, which are already relatively high. This will probably not prevent the ECB from lowering key interest rates again at its meeting on June 5, partly because goods prices have fallen slightly and at an accelerated pace," HCOB's Chief Economist Dr. Cyrus de la Rubia said.