Services activity accelerate in US and euro area

Economic data on Wednesday provided further signs that the US economy is regaining momentum.

The Federal Reserve's Beige Book reported that economic growth strengthened throughout the country last month, Markit's services PMI jumped to 58.1 in May from 55.0 in April, helping to push the composite index up to 58.4 from 55.6, and the Institute for Supply Management's non-manufacturing index rose to 56.3 from 55.2.

However, a report from ADP showed that private employment increased by 179,000 in May compared with 215,000 in April, and the trade deficit increased 6.9 percent in April.

In the euro area, first quarter economic growth was confirmed at 0.2 percent on Wednesday.

Markit's composite index for the euro area fell to 53.5 in May from 54.0 in April though even as the services PMI rose to 53.2 from 53.1.

Markit's composite index for the UK also fell to 59.1 in May from 59.4 in April after the services PMI fell to 58.6 from 58.7.

However, Markit's services business activity index for Japan rose to 49.3 in May from 46.4 in April, helping to push the composite index up to 49.2 from 46.3.