A closely watched survey indicates that the euro zone economy is shrinking and that the deteriorating economic picture is not just confined to debt-stressed countries such as Greece.
The monthly purchasing managers' index - a broad measure of business activity - from financial information company Markit confirms market expectations that euro zone activity shrank for a third month running in November.
Though its main composite index, which combines its manufacturing and services surveys, rose to 47.2 in November from 46.5, it remained below the 50 mark which separates growth from contraction for the third month in a row.
Markit said its survey suggests that the euro zone is shrinking at a quarterly rate of 0.6% in the fourth quarter and that the malaise has spread to Germany and France.
While the dominant service sector contracted less than expected this month, the euro zone manufacturing sector, which fuelled a large part of the last recovery, shrank more than thought as output fell to its lowest level since mid-2009.
The services part of the index rose to 47.8 this month from October's 46.4, beating expectations for 46.5. The business expectations index fell to 52.5 from October's 52.7, its weakest showing since March 2009.
The euro zone's manufacturing PMI fell to 46.4 in November from 47.1 last month, its lowest reading since July 2009.
