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Euro zone Oct private sector slump flags recession

Euro zone Oct private sector slump flags recession
On Friday November 4, 2011, 6:50 am EDT
By Anooja Debnath

LONDON (Reuters) – Private sector activity in the euro zone shrank at its fastest pace in 28 months in October as the debt crisis sapped new business and soured sentiment in an economy looking like it is heading into a slump, survey data showed on Friday.

Markit’s composite Purchasing Managers’ Index for the single currency area sank to 46.5, down from 49.1 in September and below an earlier flash estimate of 47.2.

“(This) is the kind of level which frankly is pointing to recession,” said Peter Dixon, economist at Commerzbank.

“We knew it would it bad but clearly the fact it deteriorated more rapidly than we anticipated indicates the economy is losing momentum at a faster pace. Obviously the euro zone debt crisis is leaving its imprint on the real economy.”

(Think ECRI :) )

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