Business activity in the euro zone in July fell to its lowest level since November 2001, a key survey shows today.
The euro zone's purchasing managers' index (PMI), compiled by data and research group Markit, fell to 47.8 points in July from 49.3 in June, confirming an earlier estimate.
The euro zone PMI survey's component for the services sector fell to 48.3 points in July from 49.1 in June, hitting the lowest level since June 2003. A level below 50 for the index indicates a contraction of activity in the sector.
The latest index signalled a contraction of private sector output for the second month running, with the rate of decline accelerating to the fastest since November 2001, Markit said.
Of the euro zone's biggest economies only Germany registered an increase of activity in July, but the increase was sharply down. In Spain and Italy, business activity contracted for the seventh consecutive month while France endured its second straight month of contraction.
