Euro-Area Recession Deepens as Manufacturing Shrinks
Bloomberg reported that Euro-area services and manufacturing output contracted more than economists forecast in October and German business confidence dropped to the lowest in more than 2 1/2 years as Europe’s recession deepened.
Bloomberg said the European Central Bank and the International Monetary Fund have both lowered their forecasts for the euro-area economy as governments cut spending to plug budget gaps, eroding consumer and export demand. The region’s debt burden rose to a record in the second quarter, Bloomberg notes, reaching 90% of gross domestic product.
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