The seasonally adjusted HSBC Service Sector Business Activity Index fell to 51.4 in March from 54.2 in February.
On the domestic front, business activity among Texas-area manufacturers is expanding at a slower rate this month than in January, according to the Federal Reserve Bank of Dallas' general business activity index.
U.S. economic data due for release Tuesday includes the weekly Goldman Sachs chain store sales index, the weekly Johnson Redbook retail sales report, new residential sales and the Richmond Fed business activity index.
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The Federal Reserve Bank of Philadelphia's March business-activity index showed expansion, while economists had expected contraction.
Only Ireland achieved growth in business activity, with an index score of 55.3, close to its 20-month high reached in October.
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The Philadelphia Federal Reserve's February index of business activity, an indicator of business conditions for manufacturers in the region, posted a surprise decline to -12.5, while a positive reading had been expected.
Business conditions for mid-Atlantic manufacturers remain barely positive this month, as the Federal Reserve Bank of Philadelphia's index of general business activity slowed in April from March.
Its Eurozone Composite Purchasing Managers' Index (PMI), which measures business activity, rose to 46.5 in November from 45.7 the month before.
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The expansion looks set to continue, according to this week's purchasing managers' services index, which recorded a sharp increase in business activity in January.
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The U.S. non-manufacturing ISM came in better than expected at 53.7 in May from 53.5 in April, driven by strong new orders and business activity that were offset partially by a decline in the employment index.
U.S. economic data due for release Tuesday includes the Chicago Fed national activity index, existing home sales, and the Richmond Fed business survey.
U.S. economic data due for release Tuesday includes the weekly Goldman Sachs chain store sales index, the weekly Johnson Redbook retail sales report, the Case-Shiller home price index, the consumer confidence index, new residential home sales and the Richmond Fed business activity survey.
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Despite reporting the first fall in new business for six months, the index suggested Scottish service providers continued to expand activity solidly and at a slightly faster pace than their goods-producing counterparts.
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Using highly detailed information on new business owners by the month, the Kauffman Index gives analysts an important perspective on certain crucial demographic nuances of entrepreneurial activity that are unavailable with other indicators.
This was true during the recession of 2000-01, and according to the Kauffman Index of Entrepreneurial Activity (KIEA), which measures the new entrants to self-employment and business ownership (two measures of entrepreneurship), it has been true even through the Great Recession of 2008-09 and its aftermath.
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