Eurozone recession to continue into 2013 says Markit

he rate of contraction in the eurozone economy eased slightly in November, according to a closely-watched survey.

But the region is still in line for another quarter of recession with further contraction likely in early 2013, according to Markit, who produced the survey.

Its Eurozone Composite Purchasing Managers’ Index (PMI), which measures business activity, rose to 46.5 in November from 45.7 the month before.

A score below 50 indicates contraction.

Although the figure was better than expected, there were few signs that the eurozone would climb out of recession any time soon, Markit said.

“Despite the easing in the rate of decline, the region still looks set for further contraction in the early months of 2013, as weak consumer demand in many countries combines with low levels of business confidence and falling global trade”, said Chris Williamson, Markit’s chief economist.

The eurozone economy shrank by 0.1% in the third quarter of the year and is forecast to shrink again in the current quarter as downturns in the services and manufacturing sectors look set to continue.

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via BBC News – Eurozone recession to continue into 2013, survey suggests.