* Euro zone, German economies contract more than expected

* In U.S., signs contraction may be slowing

* Central and Eastern Europe need more help

* Wall Street closes down, European stocks close up (For full crisis coverage, double click on [nCRISIS])

By Nick Zieminski

NEW YORK, May 15 (Reuters) - Euro zone economies shrank far more than expected in the first quarter, with Germany posting its worst performance since reunification, but in the United States on Friday there were signs of improving consumer sentiment and a stabilizing manufacturing sector.

Gross domestic product for the 16 countries using the euro contracted by 2.5 percent quarter-on-quarter, or by 4.6 percent year-over-year, the worst on record. Europe's largest economy, Germany, fell by 3.8 percent. For details, see [ID:nLF21360]

The figures added to evidence that despite signs the worst global recession in six decades might be easing, recovery remained elusive.

"It was a massive surprise just how weak the data was," said Paul Mackel, HSBC senior currency strategist.