London

THE euro area's lacklustre pace of growth is set to continue as the economy cools from a strong first-quarter performance, according to Markit Economics.

Its gauge of new business growth at manufacturing and services firms fell to a 16-month low in May, meaning output is likely to stay subdued in the coming months. The surveys suggest the 19-nation economy will grow 0.3 per cent this quarter, down from 0.5 per cent in the three months through March.