The FINANCIAL — (BRUSSELS) – Private sector economic activity in the eurozone slowed even faster than initially thought in August, a closely-watched survey showed on Monday, published today EU Business web-site.
Eurozone growth hit a new two-year low level, with the Purchasing Managers Index (PMI) leading indicator, compiled by London-based researchers Markit, logging 50.7 points, whereas a first estimate gave 51.1.
According to the online edition, while any score above 50 indicates growth, the revision came after the manufacturing-only index sank to 49.0 points in August from 50.4 in July.
"The turnaround in the eurozone economy has been alarmingly abrupt since the surging pace of growth seen earlier in the year," Markit chief economist Chris Williamson said.
"All of the largest member states are now feeling the pain of weakened demand and uncertainty about the months ahead, as austerity measures take hold and the region's financial crisis continues to escalate."
After growth slowed to 0.2 percent in the three months to June, Williamson said a contraction in the final quarter "looks a distinct possibility unless business and consumer confidence improve noticeably in coming months."
Figures for manufacturing last week showed that only Germany, the Netherlands and Austria showed growth in that sector, with France, Italy and Spain each slumping into negative territory.
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