By William L. Watts
FRANKFURT (MarketWatch) -- Private-sector activity across the 17-nation euro zone contracted at its fastest pace since June 2009, despite a softening of the downturn in Germany, the region's largest economy, according to the preliminary September Markit composite purchasing managers index released Thursday. The index fell to 45.9 from 46.3 in August, defying forecasts for a rise to 46.7. The contraction was driven by services, with the PMI for the sector falling to a 38-month low of 46.0 from 47.2 in August, Markit said. The manufacturing PMI rose to 46.0, its highest level in six months, from 45.1 in August. The downturn "gathered further momentum in September, suggesting that the region suffered the worst quarter for three years," said Chris Williamson, chief economist at Markit. The reading is consistent with a 0.6% third-quarter contraction in gross domestic product, which would put the region back into a technical recession, Williamson said.
