A new report shows that business activity in the euro zone slid further in October, highlighting the threat of recession in the area.
The survey of 4,500 companies indicated a second consecutive month of contraction in the sector amid weaker demand for goods and services, according to the Purchasing Managers' Index (PMI) compiled by research firm Markit.
"The PMI signals a heightened risk of the euro zone sliding back into recession," said Markit chief economist Chris Williamson.
The PMI sank to 47.2 points in October, the fastest rate of decline since July 2009, after falling to 49.1 points in September. A score below 50 indicates that activity fell.
Markit said Germany, Europe's biggest economy, logged "another very modest expansion of output" after strong growth in the first half of the year.
In France, the second biggest European economy, manufacturing and services output fell for the first time since July 2009 while the rest of the euro zone contracted for the fifth month in a row.
"Forward-looking indicators, such as the further lowering of expectations of services growth in the year ahead and the near-stalling of job creation, suggest that companies are bracing themselves for the situation to continue to deteriorate," Williamson said.
