Index of European service businesses shows a stronger slide than expected

THE private sector services economy in the eurozone shrank sharply in December. More jobs than first estimated have been cut, reflecting the sharp slowdown in Europe that has become evident in recent months.

The data reinforces expectations that the European Central Bank is likely to cut interest rates to new lows, analysts said.

Details of the slowing trends were released yesterday in The Markit Eurozone Purchasing Managers’ Index of around 2,000 key companies.