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A survey showed on Monday that business activity in the euro zone contracted unexpectedly sharply this month, with the region’s dominant services sector flat, while the slowdown in manufacturing accelerated..
The downturn appears to be broad-based, with Germany, Europe’s largest economy, seeing a deepening contraction, while France, Europe’s second-largest economy, has fallen back into recession after a boost from hosting the Olympic Games in August..
The S&P Global Purchasing Managers’ Index fell to 48.9 this month from 51.0 in August, below the 50-point mark that separates growth from contraction for the first time since February..
A Reuters poll predicted a slight decline to 50.5 points..
Total demand fell at its fastest pace in eight months. The new orders index fell to 47.2 from 49.1..
