Service sector in eurozone shrinks
22.02.2012
The eurozone's service sector shrank this month, according to a new survey.
Markit's Eurozone Services Purchasing Managers' Index (PMI) fell to 49.4 from January's 50.4. Any figure below 50 means activity fell.
The manufacturing sector did not peform much better, with the PMI only reaching 49 from January's 48.8.
The factory output index remained steady at last month’s 50.4 but new orders fell for the ninth month, with the index at 47.1.
“We need order growth to pick up but it is still in decline, they are still relying on their pipeline of previous orders to sustain these levels of activity. In the service sector they are stimulating demand through price cuts, manufacturers are also squeezing their margins,” noted Markit’s chief economist Chris Williamson.
Markit said that the data was complied before the Greek bailout decision, therefore this development could lead to sharper than normal revisions when final figures are released at the start of March.
Meanwhile the euro was fluctuating in its value against the dollar this morning as concerns persist over whether Greece's bailout deal can prevent a default in the longer term.
Karina Corbett