Concern over weakness in euro zone’s big economies

LONDON: Weakness in the euro zone’s major economies, such as Germany and France, risks choking off the growth emerging in countries that were at the forefront of the region’s debt crisis, a closely monitored survey has indicated.
In its monthly survey of business activity, financial information company Markit said the euro zone ended 2014 on a tepid note despite “signs of life” in countries like Ireland and Spain, which were hit hard by the financial crisis.
That’s another potential headache for policymakers across the region.
As well as fears that the euro zone will soon suffer a bout of deflation, or falling prices, which can choke the recovery further, there are renewed concerns over Greece’s future in the eurozone. In concert, they’ve renewed pressure on the euro and exacerbated the fall in oil prices.
Many of the problems confronting the euro zone would be helped by economic growth but survey after survey shows that prospect remains distant.
Markit’s so-called purchasing managers’ index — a gauge of business activity across manufacturing and services — reinforced that picture.
Its main index rose to 51.4 points in December from 51.1 the previous month.