Recession-hit Eurozone businesses reel under growing gloom

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Even as the holiday shopping season nears, there is little to cheer for in the recession-hit Eurozone economy where businesses are shutting shop as angry, cash-strapped and jobless consumers hit the streets protesting against a severe austerity squeeze while policymakers do little to solve the debt contagion that has gripped the region for three years now.

Private Sector output in the 17-member Euro zone economy shrank for a tenth straight month in November 2012 as the deepening debt turmoil crimped demand, signaling no end to the region's economic blues.

A combined gauge of euro area manufacturing and services fell to 45.8 in November from 45.7 in October, with a reading below 50 signaling contraction in private sector output over the previous month, Markit Economics said on Thursday.

Factories and service providers in the region are cutting back output amid a slump in demand as cash-strapped households slash spending amid the region's severe austerity squeeze and record unemployment.

Severe austerity measures including tax hikes and salary cuts undertaken by most Euro area economies including Spain, Italy and Greece have squeezed consumer spending in the region, worsening the region's economic slump.

Europe's economic woes have deepened as the region's economy slipped into a recession for the second time in four years last quarter, adding pressure on policymakers to find a quick fix to the debt saga or prepare for severe economic and financial turmoil.

Story first published: Friday, November 23, 2012, 16:30 [IST]
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