Euro zone business activity unexpectedly shrinks in September

A survey showed on Monday that euro zone business activity unexpectedly contracted in September, with the region’s dominant services sector flat, while the slowdown in manufacturing accelerated.

Europe’s largest economy Germany saw a further decline, while France, the second-largest, fell back into contraction after a boost from hosting the Olympic Games in August.

The S&P Global Purchasing Managers’ Index (PMI) fell to 48.9 this month from 51.0 in August, below the 50-point mark that separates growth from contraction for the first time since February.

Total demand fell at its fastest pace in eight months, with the new orders index falling to 47.2 from 49.1.