Closely watched survey raises fears of the eurozone falling back into recession

Economic Indicators Associated Press

A closely watched survey says the muted economic recovery in the 18-country eurozone lost ground in November and that the region faces the prospect of another recession.

Continue Reading Below

Financial information company Markit says Thursday that its purchasing managers' index for the eurozone, a broad gauge of business activity, fell to a 16-month low of 51.4 points in November from 52.1 in October. Though anything above 50 indicates expansion, the survey suggests a recession isn't far away.

Markit's chief economist Chris Williamson says the decline "raises the risk of the region slipping back into a renewed downturn" and that quarterly growth in the final quarter is set to be just 0.1-0.2 percent. Figures last week showed that the eurozone grew by only 0.2 percent in the third quarter.