LONDON -Euro zone business activity contracted sharply and unexpectedly this month as the bloc's dominant services industry flatlined while a downturn in manufacturing accelerated, a survey showed on Monday.
Overall demand fell at the fastest rate in eight months. The new business index plunged to 47.2 from 49.1. On Sept. 12 the European Central Bank cut interest rates again and signalled a"declining path" for borrowing costs in the months ahead as inflation slows and economic growth in the euro zone falters.
Meanwhile, in Britain - outside the European Union - businesses also reported a slowdown in growth this month, potentially encouraging the Bank of England to consider cutting interest rates again.
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