Europe Manufacturing Shrinks as Recovery Concerns Mount

Euro-area manufacturing shrank for a seventh month and unemployment rose to the highest in more than 14 years, stoking concern that the regional economy may struggle even as global growth improves.

A manufacturing gauge based on a survey of purchasing managers in the 17-nation region increased to 49 in February from 48.8 in January, remaining below the 50 line that divides expansion from contraction, London-based Markit Economics said today. Separate reports showed the jobless rate rose to 10.7 percent in January, the highest since October 1997, and inflation accelerated last month.