(BRUSSELS) - Business activity in the 15 countries sharing the euro contracted slightly faster in June than first estimated, a survey indicated on Thursday.

The eurozone's purchasing managers' index (PMI), compiled by data and research group Markit, slid to 49.3 points in June from 51.1 in May, worse than an initial estimate of 49.5.

The fall brought the index below the 50-point level indicating a contraction in private sector activity for the first time since July 2003.

Meanwhile, the PMI index for the eurozone's vast services sector also slumped into contraction territory, falling to 49.1 points in June from 50.6 in May, also worse than an initial estimate of 49.5.

On top of the weak activity, the survey showed prices for businesses rising rapidly, raising the spectre of stagflation.

"The final PMI data have come out weaker than the flash release, painting a darker picture of eurozone growth prospects for the rest of the year," said RBS economist Jacques Cailloux.

"The private sector economies of Spain and Italy are now in recession, according to the PMI data, and France is now also contracting," he added. "At the same time, the survey highlights a further surge in inflationary pressures."

Text and Picture Copyright 2008 AFP. All other Copyright 2008 EUbusiness Ltd. All rights reserved. This material is intended solely for personal use. Any other reproduction, publication or redistribution of this material without the written agreement of the copyright owner is strictly forbidden and any breach of copyright will be considered actionable.