The eurozone may be entering another stage of recession as governments, banks and companies struggle to cut their massive debts in a period of weak economic growth, rating agency Standard & Poor’s has warned.
The European currency block is entering a new stage of economic crisis, S&P said in a report on Thursday.
“We think the eurozone might be entering a stubborn phase of subdued growth as deleveraging continues and the world economy weakens,” the paper reads.
The warning followed manufacturing data which showed a slump in France in October. The Markit Flash Euro Zone Composite Output Index fell to 48.0 comparing to 48.4 in September. That is the lowest since February. A reading below 50 marks a contraction in private sector activities. France’s economy has been nicknamed the ‘sick man’ of Europe in recent months.