Europe Stocks Drop to Eight-Month Low on U.S. Manufacturing Data

European stocks dropped to an eight-month low after a report showed U.S. manufacturing expanded at the slowest pace in two years as lawmakers prepared to vote on a proposal to raise the nation’s debt limit.

Italy’s Intesa Sanpaolo SpA led banks lower. Ferrovial SA paced a decline in construction shares, losing 4.5 percent. Veolia Environnement SA, the world’s biggest water utility, slumped to the lowest level in eight years. Outotec Oyj sank 10 percent after Danske Bank A/S downgraded the Finnish company.