A man selling paper handkerchiefs passes next to a bus stop advertising a state lottery, in Athens, Wednesday, Sept. 19, 2012. Debt-strapped Greece is negotiating a major new austerity package worth more than euro 11.5 billion ($15.1 billion) with its rescue lenders. The measures are a requirement for continued emergency loan payments. (AP Photo/Petros Giannakouris)PAN PYLAS
LONDON (AP) – Europe appears headed for a deepening economic recession despite a recent easing in market concerns over the three-year debt crisis, a closely-watched survey found Thursday.
Financial data company Markit said its purchasing managers’ index – a gauge of business activity – for the 17-country eurozone fell to 45.9 in September from 46.3 the previous month.
The decline was a surprise as the consensus in the markets was for a modest improvement. Anything below 50 indicates a contraction in economic activity.
September’s rate was the lowest in over three years and came despite an easing in the rate of economic contraction in Germany, the eurozone’s largest economy.