Euro Zone Economic Slump: Drastic Drop in Business Activity

The euro zone's business activity sharply deteriorated as the services sector contracted, and manufacturing sank deeper into recession, according to a survey. The Purchasing Managers' Index fell to a 10-month low, leading to lower bond yields and a weaker euro, amid political uncertainties in Germany and France.

Euro zone business activity has experienced a significant decline, with the services sector contracting and manufacturing diving further into recession, according to a Friday survey.

The Purchasing Managers' Index, compiled by S&P Global, dropped to a 10-month low, highlighting weakness in the euro zone economy as policymakers grapple with dwindling demand.

Political tensions in Germany and France, along with potential economic impacts from proposed trade tariffs by President-elect Donald Trump, are contributing to the bleak outlook for the euro zone.

(With inputs from agencies.)