Euro-area services and manufacturing output contracted more than initially estimated in August, adding to signs the economy has slipped into a recession.
A composite index based on a survey of purchasing managers in both industries in the 17-nation euro area fell to 46.3 from 46.5 in July, London-based Markit Economics said today. That's below an initial estimate of 46.6 published on Aug. 23. A reading below 50 indicates contraction.
Europe's economy probably entered its first recession in three years in the second quarter as governments stepped up spending cuts to plug budget gaps, undermining consumer and export demand. Euro-area economic confidence dropped more than economists forecast in August and German unemployment increased, adding to signs of a deepening slump as the European Central Bank prepares for its monthly meeting tomorrow.
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