Eurozone private sector shrinks for 15th month

The eurozone’s private sector activity has shrunk for the 15th consecutive month in April, suggesting the region may be falling deeper into recession.

Economic research firm, Markit, reported on Monday that the EU Purchasing Manages Index (PMI) stands at 46.9, still below the growth threshold of 50.

As for Germany, Europe’s largest economy, the recorded PMI remains under the 50-threshold at 49.2, the research firm stated, warning that Germany’s economic downturn could drag the whole eurozone deeper into recession.

“The renewed decline in Germany will also raise fears that the region’s largest growth engine has moved into reverse, thereby acting as a drag on the region at the same time as particularly steep downturns persist in France, Italy and Spain,” said Markit chief economist Chris Williamson.

This comes as the European Commission said on May 3 that the eurozone’s economy is expected to shrink by 0.4 percent in 2013.

In addition, the commission stated that the recovery in 2014 will be slower than earlier predicted and the region’s unemployment crisis will continue.

On April 30, the Eurostat data agency revealed that the unemployment rate for the region has hit a new high of 12.1 percent in March.

Europe plunged into financial crisis in early 2008. Insolvency now threatens heavily debt-ridden countries such as Greece, Portugal, Italy, Ireland and Spain.

The worsening debt crisis has forced the European Union states to adopt harsh austerity measures and tough economic reforms, which have triggered massive demonstrations in many European countries.