By William L. Watts
FRANKFURT (MarketWatch) -- Private-sector activity across the 17-nation euro zone shrank at an accelerating pace in March, with the Markit preliminary composite purchasing-managers' index for the region dropping to a four-month low on Thursday. The index came in at 46.5 versus a 47.9 reading in February. Economists surveyed by Dow Jones Newswires had forecast a reading of 48.3. A level below 50 indicates a contraction in activity. The euro-zone services PMI dropped to a five-month low at 46.5 from 47.9 in February, while the manufacturing PMI fell to a three-month low of 46.6 from 47.9. "Instead of the euro-zone economy stabilizing in the second quarter, as many - including the ECB - have been hoping to see, the downturn could therefore intensify in coming months," said Chris Williamson, chief economist at Markit.
