LONDON, July 3 Reuters Overall business growth across the euro zone slowed sharply last month as a solid expansion in the bloc39;s dominant services industry failed to offset a further deterioration in manufacturing, a survey showed on Wednesday.

HCOB39;s composite Purchasing Managers39; Index for the currency union, compiled by SP Global and seen as a good gauge of overall economic health, dropped to 50.9 in June from May39;s 12month high of 52.2.

It was just above a preliminary 50.8 estimate and the fourth consecutive month above the 50 mark separating growth from contraction.

Growth in the euro zone can be attributed fully to the service sector. While the manufacturing sector weakened considerably in June, activity growth in the services sector continued to be nearly as robust as the month before, said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.

The services PMI dipped to 52.8 last month from 53.2 but was ahead of the 52.6 flash estimate.

Manufacturing activity across the bloc took a turn for the worse last month as demand fell at a much faster pace despite factories cutting their prices, a sister survey showed on Monday.

Falling demand for manufactured goods, alongside slower growth for services, meant the composite new business index slumped below breakeven for the first time since February, registering 49.4 compared to May39;s 51.6. The flash reading was 49.2.

That was despite the European Central Bank delivering a widely predicted cut to…