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Services and manufacturing contract in EU

By Bloomberg News in Zurich | China Daily | Updated: 2012-04-05 08:05

Eurozone services and manufacturing output contracted for a second month in March, adding to signs that the economy continued to shrink in the first quarter.

A eurozone composite index based on a survey of purchasing managers in both industries dropped to 49.1 from 49.3 in February, the London-based Markit Economics said on Wednesday. That's above an initial estimate of 48.7 on March 22. A reading below 50 indicates contraction.

Rising energy costs are sapping consumers' purchasing power just as global demand falters and governments across the region cut spending to plug their budget gaps. With economies from Ireland to Spain in recession and European confidence in the economic outlook weakening in March, the indicator contributes to signs that companies may continue to curb output and hiring.

Services and manufacturing contract in EU

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