Economy of euro area showed disappointing data on manufacturing and services in May after experiencing bad weather, strikes and epidemic in first quarter that put pressure on economic growth in the beginning of this year, Bloomberg reports. Unusually high number of holidays resulted in orders drop.

As a result, common currency declined to the lowest level since last November. This is a sign of investors' dissatisfaction with euro area economy.

Taking into account this situation, European Central Bank, which is currently working on future steps of its monetary policy, can delay decision on reducing economy support until outlook for future economic development is more clear.

Growth in private sector orders slowed in May, and firms are less optimistic about their future. According to IHS Markit data, Purchasing Managers’ Index fell to the lowest level in 18 months to 54,1. It is lower than economists forecasted.

The data challenges the view that slower economic growth was a temporary effect in first quarter of this year.

Activity in manufacturing and services of euro area supports quarterly growth slightly higher than 0,4%. It corresponds with first quarter data, but lower than a year ago.