"The combination of financial market tensions and fiscal austerity remains an important drag on domestic demand in the euro zone"
- Julien Manceaux, an economist at ING Group
Eurozone manufacturing and services output shed for a seventh consecutive month in August, London-based Markit Economics survey showed on Thursday. An index measuring output in both industries rose to 46.6 from 46.5 in July, adding to signs the economic slump is deepening.
"The combination of financial market tensions and fiscal austerity remains an important drag on domestic demand in the euro zone, with external demand too weak to have an offsetting impact," said Julien Manceaux, an economist at ING Group in Brussels.
"A turnaround in sentiment can only be expected when the future of the euro zone starts to look more secure. Unfortunately, that does not seem to be happening anytime soon."
The Stoxx Europe 600 Index erased 0.59 per cent to 267.69. Germany's DAX Index lost 0.97 per cent and France's CAC 40 Index fell 0.84 per cent.
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