By PAUL HANNON LONDON -- Manufacturing activity in the euro zone declined for the fifth straight month in December, although less sharply than earlier in the fourth quarter, according to a survey of purchasing managers released Monday. Markit Economics said its Purchasing Managers Index for the sector rose to 46.9 from 46.4 in November, in line with expectations and below the 50.0 threshold that distinguishes an expansion from a contraction. Over the fourth quarter, the average PMI for manufacturing was the weakest since the second quarter of 2009. "Rates of contraction for production eased across all of the nations covered, although marked disparities persisted," Markit said. "Germany, France, the Netherlands and Austria all saw only mild falls, while marked contractions were seen in Italy, Spain and Greece." While the rate of decline in output eased, there are few signs that a rebound is imminent, with new orders falling for a seventh straight month. The survey is consistent with other indicators of recent activity, which together suggest the euro-zone economy contracted during the final three months of the year. "Euro-zone manufacturing is clearly undergoing another recession," said Chris Williamson, an economist at Markit. "Worryingly, new orders are falling at a far faster rate than manufacturers have been cutting output, meaning firms have been reliant on orders placed earlier in the year to sustain current production levels."

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