Eurozone economy has all but ground to halt as Germany and France flounder, according to the latest health check of the crisis-torn bloc
The eurozone economy has all but ground to halt as Germany and France flounder, according to the latest health check of the crisis-torn bloc.
Research group IHS Markit said its closely watched index of activity in the region fell from a subdued 51.1 in December to an even worse 50.7 this month.
It was the weakest reading for five-and-a-half years and only just above the 50 benchmark that separates growth from decline.
![Worry: ECB president Mario Draghi admitted that economic growth in the eurozone was likely to be weaker than earlier expected](https://i.dailymail.co.uk/i/newpix/2019/01/24/20/0940686800000514-6629043-image-m-4_1548362828851.jpg)
Worry: ECB president Mario Draghi admitted that economic growth in the eurozone was likely to be weaker than earlier expected
The grim report came as the European Central Bank left interest rates in the eurozone unchanged.
ECB president Mario Draghi admitted that economic growth in the eurozone was likely to be weaker than earlier expected.
Chris Williamson, chief business economist at IHS Markit, said: 'Ongoing auto sector weakness, Brexit worries, trade wars and the protests in France were again widely cited as factors dampening growth, but the survey responses indicate that a deeper malaise has set in at the start of the year.
'Companies are concerned about a wider economic slowdown gathering momentum, with rising political and economic uncertainty increasingly affecting risk appetite and demand.'
The report showed that the 'yellow vest' protests in France took their toll on business, raising fears the country could be heading towards recession.
The index of activity in the French economy fell from 48.7 in December to 47.9 this month while Germany managed to clock up a score of 52.1.
But the manufacturing sector recorded a reading of just 49.9 in a sign that German industrial output is falling.
'German businesses are reporting their toughest spell for four years,' Williamson warned yesterday.
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