SHAFAQNA- Europe, Sep 23, A recent survey has revealed that the business activity in the 18-member eurozone has slowed down again in September, and slumped to a nine-month low.
According to the survey conducted by the London-based Markit research group, the Composite Flash Purchasing Managers’ Index (PMI) fell to 52.3 this month from 52.5 in August.
Chris Williamson, chief economist at Markit, said the latest survey paints a picture of the ongoing malaise in the eurozone economy.
“The ECB (European Central Bank) will be disappointed. It’s got a big uphill battle on its hands and perhaps what the survey is saying is what they have done to date is not going to be enough,” he stated.
“With growth of output and demand slowing, employment once again failed to show any meaningful increase,” Williamson said.
On Monday, ECB President Mario Draghi said the bank is ready to use “additional unconventional instruments” to help boost the dwindling eurozone economy “should it become necessary to further address risks of a too prolonged period of low inflation.”
“Anemic demand continues to hold back the private sector with further price cutting insufficient to prevent new orders from falling,” Jack Kennedy, a senior economist at Markit, said.
Issues such as the recession in Italy, manufacturing stagnation in France, and massive unemployment across the area are the problems that the eurozone economy continues to struggle with.
Last quarter, the manufacturing PMI for Germany, eurozone’s largest economy, sank to 50.3. The figure was the lowest reading since June 2013.
A service industry PMI for France, the second biggest economy in the euro bloc, also fell to 49.4.