By William L. Watts
FRANKFURT (MarketWatch) -- The downturn in private-sector activity in the 17-nation euro zone deepened in August, the Markit euro-zone composite purchasing-managers' index, or PMI, for the region indicated Wednesday. The PMI fell to 46.3 from 46.5 in July and was down from a preliminary reading of 46.6. The index for the services sector fell to 47.2 from 47.9 in July and was down from a preliminary figure of 47.5. A reading of less than 50 signals a contraction in activity. "The final August PMI came in only slightly below its earlier flash estimate, leaving the euro-zone economy on course to fall back into technical recession in the third quarter," said Rob Dobson, senior economist at Markit. "Sharp declines in new orders at manufacturers and service providers, plus further job losses, mean that there is little prospect of a sustained improvement in economic conditions over the near-term," he said.
