The euro zone's manufacturing sector slipped further into decline last month as a downturn that started in the periphery appears to be taking root among core members France and Germany, a survey showed on Wednesday.
Manufacturers in the euro zone cut workers at the fastest pace in more than two years in April after new orders fell for the 11th straight month, suggesting a gloomy outlook for the sector, which drove a large part of the bloc's recovery from the last recession.
Markit's Eurozone Manufacturing Purchasing Managers' Index (PMI) dropped to 45.9 from 47.7 in March, slightly below a preliminary reading and marking its lowest reading since June 2009.
It has been below the 50 mark that divides growth from contraction for nine months.
“Manufacturing in the euro zone took a further lurch deeper into a new recession in April," said Chris Williamson, chief economist at data compiler Markit.
The PMI's output sub-index slumped to 46.1 from March's 48.7 and below a flash reading of 46.4, chalking up a five-month low.
Earlier data from Germany, Europe's largest economy, showed its manufacturing sector contracted for a second successive month in April and it was a similar picture in neighboring France.
In Italy, the bloc's third-largest economy, the sector contracted for the ninth month while in Spain, facing deep government spending cuts in an uphill battle to trim the public deficit, activity declined at the fastest pace since June 2009.
Read more: http://www.reuters.com/article/2012/05/02/us-euro-zone-pmi-idUSBRE8410DQ20120502
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