(BRUSSELS) - Business activity in the 15 nations sharing the euro contracted for the third month running in August, although the slowdown moderated slightly, according to a survey on Wednesday.

The eurozone's purchasing managers' index (PMI), compiled by data and research group Markit, rose to 48.2 points in August from a six-and-a-half year low of 47.8 points in July.

The result was better than a first estimate of 48 points but was still below the 50-point boom or bust threshold.

The eurozone PMI survey's component for the services sector was also slightly better than estimated at 48.5 points, up from 48.3 points in July.

Despite the sign that the decline in business activity may be moderating, economists stressed that the eurozone was not out of the woods yet.

"The upward revision to the eurozone purchasing managers' survey for August does not hide the fact that this is still a very weak report," said economist Howard Archer at consultants Global Insight.

"Service sector activity contracted for a third month running and at the second fastest rate for five years," he added.

"The sector is being hit hard by a myriad of factors, including financial market turmoil, muted consumer spending, softer growth in key export markets, elevated costs and a strong euro."

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.