Posted by: youngragingbull | October 3, 2012

Eurozone September PMI points to recession

The final eurozone composite purchasing managers’ index for September came in slightly above a preliminary estimate on Wednesday, but still pointed to a steep monthly downturn for the region and a return to recession in the third quarter, according to survey compiler Markit.

The index fell slightly to a four-month low at 46.1 from 46.3 in August, coming in a shade above a preliminary estimate of 45.9. A reading of less than 50 indicates a contraction in activity.

The services PMI fell to its lowest level since July 2009 at 46.1, down from 47.2 in August.

“It seems inevitable that the region will have fallen back into recession in the third quarter,” said Chris Williamson, chief economist at Markit. “After falling by 0.2% in the second quarter, a steeper fall in output is likely for the third quarter.”

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