The eurozone is headed for another recession as its economic output shrinks again in 2012’s third quarter, economists say.
Economists made the call after observing that the region scored in the contraction range during July and August, according to an instrument that measures new orders in the manufacturing and service markets, marking the seventh straight month of contraction in the eurozone’s private sector.
Even Germany, the eurozone’s strongest economy, showed an accelerating decline in output, with its Composite Output Index falling to a 38-month low of 47.0, down from 47.5 in July.
German blue-chip companies ThyssenKrupp and Opel are reducing working hours because of weaker demand, while Bosch has announced it is negotiating reduced working hours with its workforce.
The findings contrast with more positive news relating to Germany’s public finances, which were back in the black for the first six months of the year, according to Destatis, the country’s federal statistics office.