Euro zone manufacturing activity drops sharply in October

As per the latest Purchasing Managers Index (PMI) data, euro zone manufacturing activity dropped sharply in October. The PMI index fell to 47.2 in October compared to 49.1 in the previous month of September. This is the fastest drop since last 2 years. Any reading below 50 shows contraction and reading of 47.2 is considered to be a major concern for the sector.

This data shows that the Euro zone economy is very near to another recession. Also the current Euro zone debt crisis worsened recentlywith Greek Referendum. This news will definitely drive the G20 meet which is expected to be held this week. All the G20 leaders are expected to find new ways to resolve the current euro zone debt crisis as soon as possible.

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