A new survey shows that euro zone manufacturing activity fell to a near seven-year low in September.
The Markit Eurozone Purchasing Managers' Index for the manufacturing sector slumped to 45 from August's 47.6. This was below economists' forecasts, and also below an initial estimate of 45.3.
The figure for new export orders slid to levels not seen since December 2001 while the backlogs of work fell to a record low for the index's six-year history.
The release marks the fourth consecutive month the PMI index has been below the 50 mark that divides growth from contraction and will provide worrying reading for the European Central Bank as it faces a stuttering economy and above-target inflation.
Separate figures from Eurostat showed that euro zone unemployment moved up in August to 7.5% of the workforce. Until August, the jobless rate had held steady at 7.4% for three months running despite a sharp deterioration in the economic outlook.
