Euro-Area Manufacturing, Services Contraction Worsens: Economy

Euro-area services and manufacturing contracted at a faster pace than economists forecast in February as the economy struggled to recover from the deepest recession in almost four years.

A composite index based on a survey of purchasing managers in both industries in the 17-nation currency bloc decreased to 47.3 from 48.6 in January, London-based Markit Economics said today. Economists had forecast a reading of 49, according to the median of 22 estimates in a Bloomberg survey. Germany’s services measure declined more than forecast to 54.1, while its factory gauge rose above 50, indicating expansion in that industry.