Eurozone downturn deepens as bloc’s three largest economies contract

Europe’s three biggest economies shrank last month, sending the wider eurozone into reverse, as demand tumbled and confidence ebbed away. 

Germany, France and Italy experienced contractions in September – the first time they have done so simultaneously this year. 

Shrinking: Germany, France and Italy experienced contractions in September – the first time they have done so simultaneously this year

The purchasing managers’ index for the bloc fell from 51.0 in August to 49.6, on a scale where the 50-mark separates growth from contraction, and signifying the eurozone economy shrank for the first time since February. 

Germany, suffering a deepening industrial decline, is Europe’s biggest economy and spearheaded the downturn. 

France faded after an Olympics-driven boost while Italy shrank marginally. 

Cyrus de la Rubia, economist at Hamburg Commercial Bank, which compiled the survey, said: ‘It is Germany where things look bleakest, with companies cutting staff. ‘This is where the recession in manufacturing is making itself felt.’ 

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