Service Industry Sees Growth Slowdown

Service-industry growth slowed in June in the 12 countries using the euro, a survey said. Industries ranging from tourism to banking to software grew at a slower pace in June than in the previous month as unemployment deterred consumers from increasing spending, the survey of 2,000 purchasing managers compiled for Reuters showed. An industry growth index fell to 55.3 from 55.8 in May. Consumer spending is pressured by the high unemployment rate of nearly 9 percent, the highest in almost five years. Germany, Europe's largest economy, is a particular problem. As a result, German companies such as software Giant SAP are reliant on rising demand outside their home markets, a Bloomberg news agency report said.