Private sector activity slides in eurozone

It indicated more trouble in the debt-struck single currency area, a closely-watched survey showed Monday.The survey of 4,500 eurozone companies indicated a second consecutive month of contraction in the sector amid weaker demand for goods and services, according to the Purchasing Managers Index (PMI) compiled by Markit research firm.The PMI signals a heightened risk of the eurozone sliding back into recession, said Markit chief economist Chris Williamson.The PMI sank to 47.2 points in October, the fastest rate of decline since July 2009, after falling to 49.1 points in September. A score below 50 indicates contraction.Germany, Europes economic locomotive, logged another very modest expansion of output after strong growth in the first half of the year, Markit said. German manufacturers reported the first drop in production since June 2009.In France, the second biggest European economy, manufacturing and services output fell for the first time since July 2009 while the rest of the eurozone contracted for the fifth month in a row.Forward-looking indicators, such as the further lowering of expectations of services growth in the year ahead and the near-stalling of job creation, suggest that companies are bracing themselves for the situation to continue to deteriorate, Williamson said.Furthermore, it is not only the periphery that is contracting, he said.France saw a fall in private sector output for the first time in over two years, led by a worryingly steep deterioration in the service sector. Meanwhile, German manufacturing -- the spearhead of the regions recovery -- is now also in decline.