Euro Zone service sector activity drops in December

Euro zone slowdown continues even for service sector after dismal data of manufacturing activity. The Markit euro zone service purchasing managers' index (PMI) stood at 48.8 in December which was the highest in last three months and much better than expected. Any index lower than 50 indicates a contraction.

This data confirms that the entire euro zone is still struggling to recover from its worst crisis. Euro zone recession is very much likely for the next year 2012 if this contraction in both manufacturing and service sectors continues.