Data Suggest Euro Zone May Slide Back Into Recession – EU Business News – CNBC

The euro zone’s service sector shrank unexpectedly this month, reviving fears that the economy risks sinking into recession, a business survey showed on Wednesday.

Markit’s Eurozone Services Purchasing Managers’ Index (PMI) fell to 49.4 from January’s 50.4, missing even the lowest forecast in a Reuters poll of 44 economists whose predictions centred on a rise to 50.6.

A reading below 50 signifies a contraction.

“There is a possibility GDP will be flat but chances are we could easily slide back into a very small contraction,” said Chris Williamson, chief economist at data compiler Markit.

via Data Suggest Euro Zone May Slide Back Into Recession – EU Business News – CNBC.