Financial Times FT.com

Eurozone feels effects of turmoil

By Ralph Atkins in Frankfurt

Published: August 24 2007 18:51 | Last updated: August 24 2007 18:51

The eurozone’s economic recovery show signs of losing momentum while global financial turmoil is already taking its toll on the services sector, a closely watched survey has suggested.

Economic growth in the 13-country bloc remains robust, according to purchasing managers’ indices released on Friday. But manufacturing output is expanding at the slowest pace since December 2005, while service sector optimism about future trends has dropped sharply and is the weakest since March 2003.

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