The eurozone is on the brink of recession after output fell for the first time since the pandemic.
Statistics agency Eurostat said gross domestic product across the single currency bloc fell 0.1 per cent in the third quarter of the year.
It was the first quarterly decline since the spring 2020 lockdowns and came as the region was enfeebled by the moribund German economy.
Output slump: Statistics agency Eurostat said gross domestic product across the single currency bloc fell 0.1% in the third quarter of the year
Separate figures from Eurostat showed that inflation tumbled from 4.3 per cent in September to 2.9 per cent in October – its lowest since July 2021 and closer to the 2 per cent target.
The slide in inflation and fall in output underlined the harsh effect of rising interest rates on the economy.
Rates in the UK are thought to have peaked, with the Bank of England set to leave them at 5.25 per cent tomorrow.
Economists warned that the outlook in the eurozone was bleak, with another quarter of contraction a possibility in the final three months of the year.
That would tip the region into recession.