"Figures [flash manufacturing and services] clearly show that the recession in the euro zone is far from over"
- Peter Vanden Houte, an economist at ING Group
Euro area services and manufacturing output fell by more than expected this month, a sign the economy has slipped into recession.
Indexes measuring manufacturing and services output fell to 47.7 and 48.7 in March from 49 and 48.8 in February, said the Markit Economics, a London-based research agency. Below 50 indicates industry contraction.
"Today's figures clearly show that the recession in the euro zone is far from over," said Peter Vanden Houte, an economist at ING Group in Brussels.
"This increases the danger that the debt crisis could come back with vengeance" by making it more difficult for governments to cut budget deficits.
© Dukascopy Bank