Business Activity Contracts In Eurozone--Markit

Research firm Markit said a number of its measurements for business confidence and PMI in the eurozone showed contractions as they fell below the 50 score which is the edge between growth and a fall off. The data was not expected and press stock markets lower.

The information is confirmation that Europe has not escaped recession. It raised the question of whether austerity measures adopted or force on most of the regions economically weakest nations will substantially undermine growth as any stimulus is sucked out of the markets. Also at issue is how strong economies like Germany can thrive while the appetite for goods and services from their neighbors falls.