Eurozone Business Activity Declines in March

Posted March 22nd, 2012 at 3:55 pm (UTC-5)
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Data published Thursday show business activity declined in March for the 17 nations and use the euro. Experts say it may mean Europe is headed for a recession.

Markit Economics says its economic index showed business activity shrank in February and worsened slightly this month.

The eurozone's economy shrank three-tenths of a percent in the last three months of 2011 and analysts say the region's economy is still in a decline.

Markit's chief economist, Chris Williamson, said the downturn is “only very mild at the moment.”

European governments have struggled to boost the continent's economy even while they cut spending, raised taxes and approved hundreds of billions of dollars in emergency loans for debt-ridden Greece, Ireland and Portugal.

The austerity measures have pushed eurozone unemployment to nearly 11 percent, the highest level since the euro was introduced 13 years ago.