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.

To read the Bloomberg article click here.