Eurozone in deep slump with plunging consumer confidence

Tim Wallace
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THE EUROZONE recession showed signs of deepening further in September as manufacturing and services activity slumped, and consumer confidence fell again, according to surveys out yesterday.

Markit’s purchasing managers’ index (PMI) for the currency area fell to a 39-month low of 45.9 and down from 46.3 in August, showing the economy contracted at an accelerating pace. Any PMI below 50 indicates falling output.

Services activity fell increasingly steeply, with its PMI falling from 47.2 in August to a 38-month low of 46 in September.

The manufacturing index also came in at 46, though that represents a slight slowing of the contraction from 45.1 last month.

France and Germany both saw activity fall, with PMIs of 44.1 and 49.7 respectively. However, Germany’s services sector did expand slightly, with a PMI of 50.6.

The European Commission’s confidence indicator fell from minus 22.7 in August to minus 23.9 in September.