The euro zone economy is on course for its deepest downturn since early 2009.
But Chinese factories returned to growth last month bringing better news for the world economy, business surveys showed today.
The latest purchasing managers indexes, which survey thousands of companies all over the world, suggested the global economic slowdown is not getting worse.
This is despite the prolonged downturn in Europe.
The US index, released yesterday because of the Thanksgiving holiday, showed manufacturing growing at its quickest pace in five months. China's vast manufacturing sector, meanwhile, expanded for the first time in 13 months.
But Europe looks set to remain the major drag on the world economy next year. It re-entered recession in the third quarter, and this quarter seems unlikely to bring any respite.
While factory data in the euro zone also surpassed expectations, there was a worrying decline in its services sector, comprising the banks, hotels and restaurants that make up most of its economy.
PMI compiler Markit said the surveys were consistent with the euro zone economy shrinking 0.5% this quarter, which would be the worst reading since the first quarter of 2009, when the economy hit its lowest ebb during the financial crisis.
German business activity shrank for a seventh month in a row in November, dragged down by services firms, while the French PMI signalled the risk of a sharp economic contraction taking place this quarter.
The euro zone's periphery - countries such as Spain, Portugal and Greece - have laboured under severe austerity policies that have deepened their recessions and sparked popular unrest.
A reminder that the euro zone's sovereign debt crisis has further to run came yesterday, as international lenders failed for the second week to reach a deal for emergency aid for Greece. Still, Spain managed to sell nearly €4 billion with ease at auction today, kicking off its funding programme for a daunting 2013.
Markit's flash euro zone services PMI fell to 45.7 this month, its lowest reading since July 2009 and failing to meet the expectations of economists who thought it would hold at October's 46. It has been rooted below the 50 mark that divides growth and contraction for 10 months now.
To a large extent, global growth next year will depend on China's ability to overcome its downturn, after a disappointing 2012. Chinese manufacturing PMI today was a clear sign the pace of economic growth has revived after seven consecutive quarters of slowdown, after it hit 50.4 in November, a 13-month high and above October's 49.5.
An improvement in key economic activity indicators in October, following encouraging signs in September, cemented the view of many analysts and investors that a rebound in the world's second largest economy gathered momentum as it entered the fourth quarter, thanks to a raft of pro-growth policies rolled out by the government over recent months.
