LONDON (AP) – Uncertainty over Greece is weighing on the eurozone economy, a closely-watched survey found Wednesday, as the clock was ticking on the country’s efforts to avoid bankruptcy.
With Greek Prime Minister Alexis Tsipras headed to Brussels for talks with European officials over how to end the standoff over the country’s bailout, financial information company Markit said concerns over Greece are acting as “a brake on growth.”
The firm’s purchasing managers’ index – a broad gauge of business activity – for May fell to a 3-month low of 53.6 points from 53.9 the month before.
Tsipras is due in Brussels later to meet Jean-Claude Juncker, the head of the European Union’s executive branch, to discuss the latest proposals over Greece’s bailout. Without a deal that would release remaining bailout funds, Greece faces bankruptcy and a possible exit from the euro, a development that could roil the 19-country eurozone. Time is running out. The country has to make a payment of just over 300 million euros ($333 million) to the International Monetary Fund this Friday.
“Any escalation of the Greek crisis could rapidly derail the recovery,” said Markit’s chief economist Chris Williamson.