Eurozone recovery losing momentum, index reveals

EUROPEAN services and manufacturing growth held steady in August at the slowest pace in almost two years, adding to signs the euro-region recovery is losing momentum as the sovereign debt crisis persists.

A composite index based on a survey of eurozone purchasing managers in both industries held at 51.1, the same as July’s reading and the lowest since September 2009, London-based Markit Economics said. Economists forecast a drop to 50, the median of 15 estimates in a Bloomberg News survey showed. A reading above 50 indicates growth.

“It’s some light amidst all the gloom, but we are not out of the woods yet,” said Martin van Vliet, senior economist at ING Bank Group.