A survey has shown that manufacturing activity in the euro zone fell in August for the first time in almost two years.
The euro zone manufacturing purchasing managers' index compiled by Markit logged 49 points in August, down from 50.4 in July. Any score below 50 means activity fell.
Only Germany, the Netherlands and Austria posted indications of manufacturing sector economic growth, with France, Italy and Spain slumping into negative territory.
The figures were "even worse than the disappointing earlier flash numbers, signalling an end to the manufacturing recovery which began in October 2009," said Markit chief economist Chris Williamson.
He said the data showed output falling for the first time since July 2009 and job creation sliding to the lowest level for nearly a year.
"Worryingly, Germany saw new export orders fall at the fastest rate of all countries surveyed," he added. Mr Williamson said this meant that the euro zone could no longer rely on export-led growth in its biggest economy to help sustain a recovery for the whole area.
He said there was a growing risk that the euro zone could slide back into recession in the second half of the year.
