The eurozone manufacturing sector contracted in March for the eighth month in a row, adding to signs of further recession. The sector is down in Italy for the eighth month and in Spain – which is fighting an economic battle on multiple fronts – it’s down for the eleventh.
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Second-tier economies like Spain and Italy have been affected by the slowdown for some time, but now the downturn has spread to core members, France and Germany.
Such pervasiveness will be a further roadblock on the way to a euro recovery, but analyst, Christian Schulz of Berenberg Bank, says that the potential for economic rehabilitation still looks likely:
“In the longer term, because of the ECB [European Central Bank] action, because of the action of European leaders in fighting the crisis, there’s more confidence that Europe can return to growth.”