The manufacturing sector of the eurozone could not be saved by the region’s largest nation by gross domestic product — Germany. Research firm Markit reports that the balance of the region has moved into what statistics show is a deepening recession.
The region’s finance ministers and European Central Bank find themselves faced with the reality that nothing they have put in place to solve the recession problem has worked and they have to find another path.
At 47.9 in February, the Markit Eurozone PMI Composite Output Index came in above the earlier flash estimate of 47.3 but remained down on January’s reading of 48.6.
The index therefore signalled a steepening of the downturn in business activity, contrasting with the easing trend which had been evident in the three months to January. However, the rate of decline remained less severe than seen in any of the nine months prior to January, and the average contraction seen over the first quarter so far has been the smallest since the first quarter of last year.