Europe’s manufacturing industry contracted for a second month in September, adding to signs the euro-area economy is edging toward a recession. A manufacturing gauge based on a survey of purchasing managers in the 17-nation euro region fell to 48.5 from 49 in August, London-based Markit Economics said on Monday. That’s above an initial estimate for September of 48.4 published on September 22. A reading below 50 indicates contraction.
European governments are struggling to contain the sovereign-debt crisis and restore investor confidence as the region’s economy is showing increasing indications of a slowdown.