European Services, Manufacturing Contract More Than Estimated
October 05, 2011, 6:53 AM EDTBy Simone Meier
Oct. 5 (Bloomberg) -- Euro-area services and manufacturing output contracted more than estimated in September, adding to signs of a deepening slowdown as governments struggle to contain the region’s debt crisis.
A composite index based on a survey of purchasing managers in both industries fell to 49.1 in September from 50.7 in the previous month, London-based Markit Economics said today. That is less than an initial estimate of 49.2 published on Sept. 22. A reading below 50 indicates contraction.
European governments are seeking ways to contain the region’s worsening debt crisis, which threatens to push the 17- nation economy back into a recession. Moody’s Investors Service yesterday cut Italy’s credit rating for the first time in almost two decades and European economic confidence slumped more than economists forecast in September.
The euro-area services indicator fell to 48.8 last month from 51.5 in August, Markit said. The manufacturing gauge decreased to 48.5 in September from 49.
--With assistance from Kristian Siedenburg in Vienna. Editors: Jones Hayden, Andrew Clapham
To contact the reporter on this story: Simone Meier in Zurich at smeier@bloomberg.net
To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net
