Eurozone activity sees surprise contraction

Downturn has fuelled bets of more policy easing by the European Central Bank

The preliminary composite eurozone Purchasing Managers' Index (PMI), compiled by S&P Global, sank to 48.9 this month from August's 51.0. 

Eurozone business activity contracted sharply and unexpectedly this month as the bloc's dominant services industry flatlined while a downturn in manufacturing accelerated, a survey showed on Monday.

The downturn appeared broad based, with Germany, Europe's largest economy, seeing its decline deepen while France — the currency union's second biggest — returned to contraction following August's Olympics boost.