The eurozone’s private sector slides back into contraction for the first time in two years

More bad economic data from Eurozone underlines pressures on business, says Wanobe founder Dave Noble

Europe’s debt crisis continues to bite hard causing the eurozone’s private sector to contract in September for the first time in two years.

A survey by a leading, global financial information services company, reveals the Eurozone’s fragile economic recovery is over with the private sector now contracting.

Markit’s purchasing managers’ index (PMI) of activity dropped to 49.1, from 51.5 last month. A reading below 50 indicates contraction.

And there is more bad news. Chris Williamson from Markit, the survey’s compiler, warns “things will deteriorate further in the coming months”.

According to the PMI survey factory output in the 17 countries using the euro contracted for the second month running.

Business activity in Germany, Europe’s largest economy, also grew at its weakest pace since July 2009.  “The recovery in Germany’s private sector economy is teetering on the brink, with both manufacturing and services growth close to stagnation,” Markit said.

Now available for 32 countries and key regions including the Eurozone, Purchasing Managers’ Index® (PMI®) surveys have become the most closely-watched business surveys in the world, favoured by central banks, financial markets and business decision makers for their ability to provide up-to-date, accurate and often unique monthly indicators of economic trends.

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About Wanobe, the business knowledge network
Writer, journalist and broadcaster, sixty-something David likes nothing better than being with family and friends, eating out and drinking great wines, and scuba diving.

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