Earlier this month, the European Central Bank introduced new measures to
stimulate the area's flagging economy.
As well as launching an asset purchase programme, through which it will buy
debt products from banks, the ECB cut its benchmark interest rate to 0.05%.
Business growth in France slumped to a three-year low, with both the
manufacturing and service sectors suffering.
"Anaemic demand continues to hold back the private sector," said Jack
Kennedy, a senior economist at Markit, "with further price cutting insufficient
to prevent new orders from falling".
In Germany, service sector growth rebounded to a two-month high, but
manufacturing growth recorded its slowest growth for 15 months.
Markit economists also raised concerns about the crisis in Ukraine, and
related Russian sanctions, which they warned could have further adverse effects
on business in Europe.
"The danger is that the ECB's efforts to stimulate the economy will prove
ineffective in the face of such headwinds, which are exacerbating already-weak
demand," said Mr Williamson.
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